Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
POSCO E&C expands loan support for partners
By Kwak Yeon-soo
POSCO E&C logo Korea Times file
By Kwak Yeon-soo
POSCO Engineering & Construction (E&C) has joined hands with financial institutions to expand loan support for its partners for the first time in the industry, according to the company, Thursday.
POSCO E&C launched a program jointly with Seoul Guarantee Insurance (SGI) and Shinhan Bank to help partners take out loans more easily.
Under the program, companies that are in a contract relationship with POSCO E&C can receive guarantees and apply for loans without particular collateral.
Partner firms are required to apply for loans within 60 days from the date of contract with POSCO E&C. Then, they can be issued a guarantee from SGI after assessment and receive a loan from Shinhan Bank.
In September last year, POSCO E&C signed a business agreement with Korea Commission for Corporate Partnership, SGI and Shinhan Bank to design a program for growing together with partners.
Partner firms can benefit from lower interest rates compared with other loan options in the market.
The borrowing limit is below 40 percent of its contract price with POSCO E&C, and the term and interest rate depends on the partner's creditworthiness.
“We've become the first Korean construction company to support our partners with loans,” a POSCO E&C official said. “The financial support program will likely secure more liquidity of funds and thus reinforce construction competence.”
POSCO E&C added its latest program was designed to create new value with its partners by fulfilling POSCO Group's vision “With POSCO.”