SK Hynix, banks and trade insurer launch 2 trillion won guarantee for chip suppliers

SK Hynix launched the "Export Supply Chain Strengthening Guarantee" (수출공급망 강화보증) on 19 October together with the government, Korea Trade Insurance Corp and commercial banks. It supports semiconductor materials, parts and equipment partners that have trouble raising funds because of high interest rates and the global economic slowdown. The agreement ceremony and the handover of the first guarantee certificate were held at the promotion hall of SK Hynix's Yongin cluster in Gyeonggi. Attendees included SK Hynix CEO Kwak Noh-jung (곽노정), Minister Kim Jung-kwan (김정관), the insurer, KB Kookmin, Shinhan, Woori and Hana banks, and partner company representatives. [ 1 , 2 , 4 , 5 , 6 , 12 ]

Most outlets said SK Hynix and the banks contribute funds, the insurer provides guarantees and the program totals 2 trillion won. Yonhap, Kukmin Ilbo and Seoul Shinmun gave the mechanism: SK Hynix and the four banks contribute 100 billion won and the insurer supplies guarantees worth 20 times that, or 2 trillion won. Newsis, citing Woori Bank, said SK Hynix put in 20 billion won and Woori Bank 30 billion won. Woori Bank said it would provide 750 billion won in support from 37.5 billion won in funds and cover about 12.4 billion won in guarantee fees. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 , 12 , 13 , 14 ]

According to Yonhap and Kukmin Ilbo, partners recommended by SK Hynix get larger loan limits and an interest rate cut of up to 2.5 percentage points. Their guarantee fees fall and the guarantee period rises from one year to three. Because semiconductors made up 42% of exports in the first three quarters of this year, the maximum guarantee limit was set 50% above that for other industries. Seoul Shinmun added a 100% guarantee, a guarantee fee discount of up to 35% and full guarantee fee support from banks for three years. Woori Bank said banks will lend working capital at preferential rates to first, second and third-tier SK Hynix partners against guarantee certificates covering 100%. [ 6 , 12 , 13 , 14 ]

Yonhap, Kukmin Ilbo and Seoul Shinmun said the guarantee is part of the government's win-win trade finance scheme. Guarantees of 2.4 trillion won had earlier been set for autos, shipbuilding and steel, and semiconductors were added. Yonhap and Kukmin Ilbo called it the largest on a single-company cooperation basis. Seoul Shinmun said the scheme, introduced in August last year, now totals 4.4 trillion won. Kim said the government will expand semiconductor win-win trade finance to at least 5 trillion won and support a joint growth R&D project, a new semiconductor fund and workforce training. The government plans to extend the scheme to defense, nuclear power and bio and reach 10 trillion won within the year. [ 6 , 12 , 14 ]

Before the ceremony, attendees toured the Yongin Fab 1 construction site and the Trinity Fab (트리니티 팹) site. Outlets said the government, local governments and SK Hynix are putting 870 billion won into the mass-production-linked fab inside Fab 1, where small suppliers can test and verify their own new technology and products in an actual production environment. Dong-A Ilbo said SK Hynix plans to run it as a non-profit foundation. It also said Fab 1 construction began in February last year at an initial 9.4 trillion won, 21.6 trillion won was added in February this year for a total of 31 trillion won, and the cleanroom is due to open next February. [ 1 , 2 , 3 , 5 , 6 , 12 ]

Kwak said building a solid ecosystem of materials, parts and equipment suppliers is essential to secure the global competitiveness of Korea's semiconductor industry and strengthen the standing of "K-semiconductors". He said SK Hynix would join forces with partners to consolidate its technology leadership in the global market. In a meeting after the ceremony, partner company representatives passed on field requests for supply chain stability and technological self-reliance, and attendees agreed to strengthen win-win ties between large and small firms. [ 2 , 3 , 4 , 6 , 12 ]