SK hynix, the South Korean government and major banks have announced a 2 trillion won ($1.5 billion) financing program for domestic semiconductor suppliers. It aims to ease financial pressure on small and medium-sized companies supplying materials, parts and equipment by helping them secure larger loans at preferential rates and with lower fees.
SK hynix and four partner banks will contribute to the program. Their combined contribution will be 100 billion won. The state-run Korea Trade Insurance Corporation will use the funds to provide guarantees of up to 2 trillion won.
South Korea’s Ministry of Industry said the deal is the largest of its kind for a single company. The ministry said it is intended to strengthen the stability and competitiveness of the country’s chip ecosystem.