KB Kookmin Bank is joining hands with NICE D&R to pursue inclusive-finance cooperation aimed at improving the stability of payments to small and mid-sized companies and on-site workers.

KB Kookmin Bank said on Monday it signed a memorandum of understanding with NICE D&R on July 13 to practise inclusive finance.

The agreement was designed to help prevent delayed payments of project costs and labour expenses at construction, shipbuilding and manufacturing sites by linking NICE D&R’s electronic payment system, Nomubi.com, with KB Kookmin Bank’s financial infrastructure.

The two companies plan to build a joint cooperation system for small subcontractors and workers and improve stability in the payment process.

In particular, they plan to introduce a trust structure to the 'KB Subcontractor Protection Account' to reduce the risk that project payments cannot be made due to provisional seizure and other actions. They will also use an escrow service to strengthen protection of transaction payments between companies.

The plan is aimed at easing the burden of cash management for small and mid-sized companies and reducing the risk of delayed wage payments for on-site workers.

A KB Kookmin Bank official said, "We will expand payment protection and financial support so that small and mid-sized companies and workers can continue their economic activities in a stable manner."