Seoul: The Korea Trade Insurance Corp. (K-SURE) will provide up to 100 billion won (US$72 million) in special financial support for small and medium-sized auto parts manufacturers to help them cope with the impact of U.S. tariff measures, the industry ministry announced.
According to Yonhap News Agency, the special support package is designed to offer preferential financing to Korean auto parts suppliers and includes a combined 8 billion won in special contributions from HL Group and Hana Bank, as stated by the Ministry of Trade, Industry and Energy. HL Group, a conglomerate that includes auto parts companies such as HL Mando and HL Klemove, as well as construction and industrial robotics firms, is participating in this initiative.
This is the second instance in which a private company and a bank have jointly contributed funds to K-SURE to support small and medium-sized enterprises affected by the U.S. tariff scheme initiated under the Trump administration. Currently, Washington imposes 25 percent tariffs on Korean cars and auto parts. However, a trade deal with Seoul reached in late July has agreed to lower the rate to 15 percent.
Last month, K-SURE signed a cooperation agreement with two leading automakers, Hyundai Motor Co. and Kia Corp., along with Hana Bank, to provide financial support to the auto parts industry. The ministry also indicated plans to develop additional financing schemes for other industries impacted by U.S. tariffs, such as steel.