South Korea launches 2 trillion won supplier finance program with SK hynix

SK hynix suppliers can now borrow against a 2 trillion won guarantee pool, South Korea's industry and trade ministry said on October 19. The agreement was signed at the chipmaker's Yongin cluster during a visit by Minister Kim Jung-kwan.

SK hynix and four banks, Kookmin, Shinhan, Woori and Hana, put up the seed money. Korea Trade Insurance Corporation guarantees roughly 20 times that amount. The release gives the contribution as 100bn won in its text and 133bn won in its event schedule.

Suppliers must be recommended by SK hynix and pass the insurer's review. They get a full guarantee for three years, interest rates cut by up to 2.5 percentage points, and three years of guarantee fees paid by the banks.

The ministry calls it the largest single-company deal under a program that began in August 2025 with carmakers, shipbuilders and steelmakers. The target is 10 trillion won this year.

Photograph: SK Hynix DDR5 Tall MRDIMM, 4300streetcar, Wikimedia Commons, CC BY 4.0. Cropped.