Hana Bank said on Thursday it signed a memorandum of understanding with HD Hyundai Heavy Industries and Korea Trade Insurance Corp on financial support to strengthen the export supply chain for the K-shipbuilding industry.

The signing ceremony, held at Ulsan City Hall, was attended by Trade, Industry and Energy Minister Jeong-kwan Kim (김정관), Ulsan Mayor Du-gyeom Kim (김두겸), Hana Bank CEO Ho-seong Lee (이호성), HD Hyundai Heavy Industries CEO Sang-gyun Lee (이상균) and Korea Trade Insurance Corp President Young-jin Jang (장영진), among other officials.

The agreement was designed to spread the results of the K-shipbuilding industry, which proved its competitiveness in global markets last year, across the export supply chain and to support management stability at small and midsize shipbuilders and their equipment and materials partners. It will start with financial support to help secure liquidity for partner companies recommended by HD Hyundai Heavy Industries, beginning in the Ulsan and South Gyeongsang region where shipbuilding is concentrated. It plans to expand this across the southern coastal belt where shipbuilding is based.

Under the agreement, Hana Bank and HD Hyundai Heavy Industries will jointly contribute a total of 28.0 billion won to Korea Trade Insurance Corp, including 23.0 billion won from Hana Bank and 5.0 billion won from HD Hyundai Heavy Industries. They plan to supply financing and liquidity worth a total of 400.0 billion won within the first quarter of this year.

Support will be provided to partner companies recommended by HD Hyundai Heavy Industries, offering practical benefits to ease the financial burden on exporters. These include support for 100 percent of guarantee fees, preferential loan interest rates, and preferential foreign exchange remittance fees and exchange rates.

The memorandum of understanding is part of the Hana All Growth Project under which Hana Financial Group plans to invest 100 trillion won over five years through 2030 to expand productive finance and inclusive finance, which it announced in October last year.

Hana Bank CEO Lee said the agreement was the third case of expanding public-private cooperation, following the automobile and auto parts industry last year and now extending it to shipbuilding. He said the bank will continue practical financial support to help stabilise exporters' management and strengthen supply-chain competitiveness, as well as to boost regional economies.