HD Hyundai Site Solutions has struck a co-prosperity network loan agreement with the Small and Medium Venture Business Corporation, opening up up to Won 25bn in policy finance to help supplier SMEs manage cash flow and strengthen production capabilities.
The pact, signed at HD Hyundai’s Global R&D Centre in Pangyo, Gyeonggi Province, is aimed at easing the working-capital strain that smaller suppliers often face between producing goods and receiving payment. It also broad...
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ens the scope of support beyond financing to include export marketing, workforce development and AI transformation, or AX, as the company and state lender seek to deepen ties across the supply chain.
According to the companies, the arrangement will allow the state-backed lender to recommend partner SMEs with strong technology and growth potential, so they can receive funding tied to delivery contracts. The model is intended to ensure firms have the cash needed to keep production moving while they wait for receivables, a pressure point that can be especially acute for smaller manufacturers.
The Small and Medium Venture Business Corporation has also set out support plans for the co-prosperity network loan scheme in both 2024 and 2025, underscoring the government’s continuing push to use policy finance to bolster supplier ecosystems. The programme is designed to help SMEs fulfil orders on time while reducing the burden on operating capital.
HD Hyundai Site Solutions said it also plans to widen assistance in automation and robotics, reflecting a broader effort to lift productivity across its supplier base. The company said that improving manufacturing processes at partner firms is essential to sustaining their long-term growth.
A company official said the emphasis on automation and robotics was important for suppliers’ continued development, while a representative of the state lender said stable financing for SMEs remains a key factor in supply-chain competitiveness and regional industrial strength.
Source: Noah Wire Services
