Hyundai Mobis Launches ₩500 Billion Win-Win Guarantee Program to Close Financing Gaps for Suppliers — BigGo Finance

Hyundai Mobis is establishing a ₩500 billion (approximately $362.6 million) win-win guarantee program for suppliers that possess strong technology but struggle to raise capital due to weak credit ratings or insufficient collateral. The South Korean auto parts giant (KRX: 012330) announced on August 28 that it signed a “Win-Win Guarantee Business Agreement” with Hana Bank and the Korea Technology Finance Corporation (KIBO) at its headquarters in the Yeoksam-dong district of Seoul on August 27.

The signing ceremony was attended by Hyundai Mobis President Lee Kyu-seok, Hana Bank CEO Lee Ho-sung, and KIBO Chairman Kwon Hyung-taek. The agreement aims to improve financial access for small and mid-sized suppliers that possess excellent technology and growth potential but have struggled to clear the hurdles of the financial sector. The initiative is designed to extend support to smaller suppliers that previously found it difficult to benefit from existing financial assistance programs, thereby enhancing management stability across the entire supply chain.

Under the agreement, Hyundai Mobis and Hana Bank will jointly contribute ₩30 billion (approximately $21.8 million). KIBO will use this contribution to establish a ₩500 billion loan guarantee ceiling, supporting suppliers’ access to funding from first-tier financial institutions. The core feature of the program is a shift in guarantee screening methodology. Because assessments will focus on technology capability and business viability rather than financial metrics, suppliers with weak credit ratings or insufficient collateral can secure KIBO guarantees and obtain preferential interest rates of 3.9–4.9% per annum from Hana Bank.

Key details of the win-win guarantee program are as follows:

Note: Based on Hyundai Mobis announcement materials

Hyundai Mobis expects the support measures to reduce suppliers’ actual financing cost burdens and contribute to expanded R&D and production facility investment through improved liquidity. The program is also expected to create synergies in building a supplier ecosystem in future growth areas that Hyundai Mobis is pursuing, including robotics and semiconductors.

President Lee Kyu-seok stated, “This win-win guarantee program was designed to support suppliers that have secured excellent technology but have struggled to capture growth opportunities due to financial constraints. We will continue to strengthen win-win cooperation with our suppliers to enhance the self-sustaining capabilities of the mobility industry as a whole.”

Hyundai Mobis plans to fully launch the win-win guarantee program in September and will gradually expand various financial support programs targeting domestic and international suppliers. The agreement represents a model in which a large corporation, a commercial bank, and a policy financial institution collaborate to close financing gaps within the supply chain, and is expected to serve as a catalyst for improving financial access for suppliers across the auto parts industry.