Shinhan Bank, Hana Bank and Woori Bank are expanding financing with the Korea Trade Insurance Corp to support the shipbuilding industry’s supply chain. The move aims to support shipbuilding subcontractors facing rising funding needs as global orders increase and to strengthen the export competitiveness of K-shipbuilding.

The three banks signed a business agreement to support the shipbuilding industry on May 13 at Hotel Hyundai by Lahan Ulsan in Dong-gu, Ulsan, with the Korea Trade Insurance Corp and shipbuilders participating, the financial sector said on Wednesday.

Under the agreement, Shinhan Bank and Samsung Heavy Industries will jointly contribute 17.8 billion won and 3.5 billion won, respectively, for a total of 21.3 billion won. Based on that, K-Sure will provide special guarantees worth 300 billion won to Samsung Heavy Industries suppliers.

Hana Bank and HD Hyundai Heavy Industries will pursue financial support worth 400 billion won to support small and midsized shipbuilders and equipment and materials suppliers.

Woori Bank and Hanwha Ocean signed a business agreement to provide shared-growth finance to strengthen export competitiveness and promote shared growth in the shipbuilding industry. Woori Bank and Hanwha Ocean will also jointly contribute 17.8 billion won and 3.5 billion won, respectively, to supply shared-growth finance worth 300 billion won.

Each bank plans to provide productive finance worth 5 trillion won to support domestic exporters.

The plan is to ease liquidity burdens for small and midsized partner companies that make up the shipbuilding supply chain and to support the building of a stable supply chain. It also aims to expand capacity for financial support by using K-Sure guarantees and to promote shared growth across the shipbuilding ecosystem.