HD Hyundai Robotics’ small and mid-sized suppliers will be able to tap production financing before goods are delivered, after the company agreed a support programme with the Daegu branch of the Korea SMEs and Startups Agency.
The arrangement is designed to ease cash-flow pressure on subcontractors that must pay for materials and labour up front, a burden that can become more acute when borrowing costs are high and input prices are rising. According to the agreement announced ...
Continue Reading This Article
Enjoy this article as well as all of our content, including reports, news, tips and more.
By registering or signing into your SRM Today account, you agree to SRM Today's Terms of Use and consent to the processing of your personal information as described in our Privacy Policy.
in Daegu, the financing is tied to purchase orders, allowing suppliers to secure funds needed to begin manufacturing before payment is settled.
The policy, known as a mutual growth network loan, is a state-backed scheme that extends working capital to SMEs once they have received confirmed orders from large buyers. In practice, it helps firms cover early-stage production costs and reduces the risk that shortages of cash delay delivery schedules or disrupt supply.
The deal follows a demand survey among HD Hyundai Robotics’ partner firms, which identified a clear need for production finance. The company and the agency said the programme is intended not only to stabilise deliveries of robot components, but also to support a more resilient industrial supply chain around the regional robotics sector.
Beyond lending support, the two sides also plan to link financing with wider restructuring measures. That includes help for firms seeking to shift into new businesses such as robot parts manufacturing, as well as structural improvement programmes for suppliers under financial strain. They also intend to identify promising robotics businesses jointly and push supply-chain stabilisation projects.
According to the Korea SMEs and Startups Agency’s Daegu office, the initiative will be expanded this year to focus on suppliers dealing with robotics anchor companies in the Daegu and North Gyeongsang region. The aim is to connect funding with policy support matched to each company’s growth stage and management condition, strengthening the local production base.
HD Hyundai Robotics, based in Daegu and known for industrial and collaborative robots, has been positioning itself as a major player in Korea’s automation sector. The company says its product range spans manufacturing applications across industries including automotive, shipbuilding and logistics, while it continues to develop collaborative systems and controllers for what it calls the next phase of intelligent manufacturing.
Ban Jeong-sik, an executive at the agency, said the partnership would help raise the competitiveness of the regional robotics industry by linking production finance with business transition and restructuring support. Kim Gwang-bo, an executive at HD Hyundai Robotics, said the company wanted suppliers to concentrate on production with steadier cash flow, thereby reinforcing the supply of key parts.
Source: Noah Wire Services
