Woori Bank, Hyosung sign $1.32 bil. financing deal for advanced industries

Woori Bank CEO Jung Jin-wan, right, and Hyosung Group Vice Chairman Lee Sang-woon pose during a memorandum of understanding signing ceremony at Hyosung headquarters in Seoul, Monday. Courtesy of Woori Bank

Woori Bank said Monday that it signed an agreement with Hyosung Group to provide up to 2 trillion won ($1.32 billion) in credit financing over the next five years to support investments in strategic industries.

The agreement was signed at Hyosung Group's headquarters in Seoul, with Woori Bank CEO Jung Jin-wan and Hyosung Vice Chairman Lee Sang-woon attending the ceremony.

Under the agreement, Woori Bank will provide up to 2 trillion won in financing over the next five years to major Hyosung affiliates, including Hyosung Corp., Hyosung Heavy Industries, Hyosung TNC and Hyosung Neochem, as the group expands investments in advanced industries.

A key feature of the arrangement is a preapproved credit limit system, which allows financing capacity to be secured in advance of planned investments. The structure is intended to reduce the time required for companies to obtain funding when investment projects move forward.

Under the arrangement, Hyosung will be able to draw on previously approved financing as investment plans are implemented, avoiding the need to repeat loan approval procedures for each project.

The deal is part of Woori Financial Group's broader initiative to support corporate investment and industrial growth.

"The agreement is a good example of productive financing that supports companies' future investments through preemptive financial support for strategic industries," said Roh Yong-pil, general manager at the bank's large corporate banking business strategy department.

"We will provide tailored financial solutions so that Hyosung Group can focus on securing future growth engines and strengthening its global competitiveness," he added.