SK hynix launches 2 trillion won supplier financing program — Korea Herald

SK hynix has launched a financing program in South Korea worth up to 2 trillion won for domestic suppliers of materials, components and equipment used in semiconductor production. The agreement was signed at the Yongin semiconductor cluster in Gyeonggi Province, Korea Herald reports.

The ceremony was attended by SK hynix CEO Kwak Noh-jung, Industry Minister Kim Jung-kwan, representatives of the Korea Trade Insurance Corp., Hana Bank, KB Kookmin Bank, Shinhan Bank and Woori Bank, as well as industry suppliers. The first guarantee under the new program was also issued during the event.

Guarantees for suppliers

SK hynix and the participating banks will contribute 100 billion won to the program. The Korea Trade Insurance Corp. will provide guarantees worth up to 20 times that contribution, bringing the available financing to as much as 2 trillion won.

Supplier companies that meet the program's requirements will be able to receive larger loans at preferential rates and with reduced guarantee fees. The funds are intended for operational activities, technology development and production capacity expansion. The Ministry of Industry called the agreement the largest trade-finance deal of its kind involving a single company.

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Trinity Fab test center

Before the signing, participants inspected the construction site of SK hynix's first plant in the Yongin cluster, as well as the planned Trinity Fab center. This is a joint project of the company and the government worth 870 billion won.

Trinity Fab is intended to become a testing site where Korean suppliers can test materials, components and equipment in conditions close to actual chip production. According to SK hynix, this is expected to address small and medium-sized companies' limited access to manufacturing environments for testing new technologies before their commercialization.

During the visit, Minister Kim said there was a need to accelerate the expansion of the semiconductor industry's domestic production capacity, while stressing that construction safety must remain a priority.