Hana Bank, Hyundai Mobis and the Korea Technology Finance Corp will provide up to 500 billion won in financial support for small and midsized firms that partner with Hyundai Mobis.

Hana Bank said on Aug. 28 it signed a comprehensive memorandum of understanding with Hyundai Mobis and the Korea Technology Finance Corp to support shared growth between large companies and SMEs and will supply liquidity to partner SMEs.

The agreement was designed to reduce financing cost burdens for Hyundai Mobis partner SMEs that face difficulties raising funds due to insufficient credit or collateral, and to support the growth of companies in the future mobility sector.

Hana Bank and Hyundai Mobis will jointly contribute a total of 30 billion won to the Korea Technology Finance Corp. Hana Bank will contribute 24 billion won and Hyundai Mobis 6 billion won, and based on that will provide up to 500 billion won in agreement-backed guarantees.

Eligible firms are partner SMEs recommended by Hyundai Mobis. The support will provide funding needed for research and development, facility investment and operating funds to underpin business stability and investment.

Firms covered by the agreement-backed guarantees will receive a 100 percent guarantee ratio for 3 years and a 0.4 percent cut in guarantee fees. The first year's guarantee fee will be fully covered.

Hana Bank plans to expand financial support for technology-based SMEs, including partner companies that have physical AI technologies such as robotics and autonomous driving.

Hana Bank CEO Ho-sung Lee (이호성) said the three institutions would work closely together so that SMEs with technological capabilities and potential do not lose growth opportunities.