In a strategic move to bolster its ecosystem, **Posco** is significantly expanding **financial support** for its **trading partners**. This initiative aims to enhance **supply chain stability** and boost **export competitiveness**, particularly crucial amidst current global tariffs and an oversupply challenge within the **Chinese steel** market.
Launched in January, this comprehensive **financial support program** is a collaborative **partnership** involving **Posco**, the **Industrial Bank of Korea (IBK)**, and **Korea Trade Insurance (K-Sure)**. Posco and IBK have jointly committed 20 billion won to K-Sure, enabling the latter to extend **preferential guarantees** totaling approximately 400 billion won to eligible **trading companies**.
**IBK** further enhances this support, providing **preferential loans** with interest rates up to two percentage points below standard market levels, alongside significantly **reduced guarantee fees** for participants.
A key feature of the **program** is its provision of **collateral-free financing**, with these advantageous **preferential guarantees** and interest rates sustained for a period of up to three years. Critically, it encompasses the entire business **operating cycle** for **steel traders**, from initial **procurement** and **production** phases through to final **payment collection**.
Leading **steel traders**, including **Kukje Steel** and **TGS Pipe**, have already reported substantial improvements in their **liquidity** and **operational flexibility** as a direct result of participating in this **financial support program**.
An official from **Kukje Steel** commented, “For a company with significant **export exposure**, the capability to respond **financially** to external market shifts is absolutely critical. **Securing liquidity** through this initiative has provided crucial support, especially as **global markets** evolve and **domestic demand** experiences softening.”
**TGS Pipe** confirmed that the funding has been instrumental in optimizing their **production schedules** for export orders and effectively managing **cash flow** amidst challenging and **volatile market conditions**.
**Posco** has seamlessly integrated this new initiative into its existing, **broader financial support framework**, which encompasses substantial **low-interest loan funds** and **ESG mutual growth funds** totaling approximately 700 billion won. This strategic addition elevates **Posco’s total financial support** for its partners to over 1 trillion won.
A **Posco official** remarked, “It is truly significant to see our dedicated **support translating into tangible results** and direct benefits for our valued partner companies. We are committed to continuously strengthening the broader **steel ecosystem** and collectively enhancing **export competitiveness** across the industry.”
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