KB Securities said on March 20 it signed a memorandum of understanding on March 19 with Doosan, the Korea Environmental Industry and Technology Institute and the Large & Small Business and Agriculture, Fisheries Cooperation Foundation to introduce and expand a mutual growth payment system.

KB Securities introduced the mutual growth payment service for the first time in the securities industry. The system is designed to ensure that delivery payments made by purchasing companies, such as large firms, to first-tier suppliers are safely paid to second-tier and lower-tier suppliers.

Suppliers can be guaranteed cash payment on the payment date. They can also cash out early at lower interest rates by using the purchasing company's creditworthiness.

The newly built "one-stop mutual growth payment system" was also officially introduced. Previously, payments were possible only if the purchasing company and lower-tier suppliers held accounts at the same financial institution, but the system now allows payments even when the financial institutions differ.

KB Securities plans to use the service launch to contribute to creating an inclusive financial environment. It plans to keep expanding a productive finance model by supporting a virtuous cycle in which funds circulate into productive areas based on securities firms' corporate finance capabilities.

A KB Securities official said, "By introducing the mutual growth payment service, we have been able to strengthen the foundation for mutual growth cooperation between companies and make a tangible contribution to improving cash flow for small and medium-sized enterprises." The official added, "We will continue to practice productive finance."