Hyosung to financially support affiliates

Ro Jae-bong, right, executive vice president of Hyosung, and Chang Man-ik, executive director of Eximbank’s future industry finance department, pose after they signed a memorandum of understanding at the chemical company’s headquarters in Gongdeok, central Seoul, Monday, to provide low interest loans to Hyosung’s smaller business partners. / Courtesy of Hyosung

By Park Jin-hai

Hyosung signed a memorandum of understanding with the Korea Eximbank, Monday, to provide financial support for the chemical company’s smaller business partners and subcontractors.

The agreement calls for Hyosung and Eximbank to cooperate on financial programs in order to make it easier for Hyosung’s smaller business partners operating overseas to receive financial support.

“We share the view that gathering the potential of a conglomerate and its smaller business partners as entities in the same boat is incremental to surviving harsh global competition,” said Ro Jae-bong, executive vice president of Hyosung.

Under the agreement, Hyosung will help the firms obtain loans at interest rates that are relatively lower, when the companies have difficulty getting loans based on their own credit standing.

It will also provide necessary consulting staff to ailing partners, who will work to improve their financial health as well as on technological development and expertise.

“We will do our utmost so that the financial support program will result in creating new values for both parties,” Ro said.

It’s a win-win agreement, according to the firm.

Under the agreement, Hyosung’s partners, that took out maximum loans will be able to tap additional loans under the support program.

The company additionally expects that the new financial program and its stable supply of funds will lead to improved competitiveness among its partners which will result in market expansion overseas.

“There have been constant calls from our partners at home and abroad. Our affiliates in local cities are in a worse situation, since the overall industry is suffering from a downturn,” said a company official.

Not only its partners in overseas projects, but all its affiliates are entitled to help from the the fund.