SK Hynix Launches About $1.5 Billion Financing Plan With Korea Trade Insurance and Four Banks

TradingKey - On October 19, Seoul time, SK Hynix, Korea Trade Insurance Corporation, KB Kookmin Bank, Shinhan Bank, Woori Bank, and Hana Bank signed an agreement in Yongin, Gyeonggi Province, to launch a semiconductor supplier financing program worth 2 trillion won (approximately $1.5 billion), primarily supporting material, component, and equipment suppliers recommended by SK Hynix.

Under the agreement, SK Hynix and the four banks will contribute a combined total of 100 billion won, based on which Korea Trade Insurance Corporation will provide guarantees of up to 20 times the fund, supporting total loans of up to 2 trillion won. The guarantee does not constitute a direct capital contribution by the trade insurance corporation.

Eligible companies must be partners of SK Hynix and pass the review of Korea Trade Insurance Corporation. Korea Trade Insurance Corporation will provide a 100% guarantee for a three-year term, while the banks will offer interest rate discounts of up to 2.5 percentage points and cover all guarantee fees during the three years. The maximum guarantee limit for an individual semiconductor company is increased by 50% compared with companies in other industries.

South Korea's Ministry of Trade, Industry and Energy stated that this is the country's largest trade financing agreement signed with a single company to date. The funds will be used for suppliers' equipment investment, technology R&D, and capacity expansion, easing the financing costs and cash flow pressures faced by small and medium-sized enterprises.

Kwak Noh-jung, CEO of SK Hynix, stated that a stable supply system for materials, components, and equipment is a vital condition for South Korea's semiconductor industry to expand capacity and enhance technological competitiveness.

The South Korean government plans to expand semiconductor-related financing to at least 5 trillion won and extend this model to export industries such as defense, nuclear power, and biotechnology, striving to raise a total of 10 trillion won for related sectors by the end of the year.

On the same day, government officials, SK Hynix, and local agencies also inspected the construction sites of Yongin's first fab and the "Trinity Fab". The project plans an investment of approximately 870 billion won to build demonstration and testing facilities close to mass-production conditions for South Korean material, component, and equipment companies to verify product performance.

According to public data, from 2025 to 2031, the Trinity Fab plans to receive 373.6 billion won from the central government, 57.7 billion won from local governments, and 443.3 billion won in private investment. The project aims to shorten product verification cycles for suppliers and lower the barrier for small and medium-sized enterprises to enter mass-production supply chains.