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Hana Bank strengthens gov’t-private partnerships to support tariff-hit businesses

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By Lee Kyung-min
  • Published KST
Hana Bank CEO Lee Ho-seoung, right, HL Group Chairman Chung Mong-won, second from right, and government officials pose after signing a memorandum of understanding at Hana Bank’s headquarters in Seoul, Sept. 12. Courtesy of Hana Bank

Hana Bank CEO Lee Ho-seoung, right, HL Group Chairman Chung Mong-won, second from right, and government officials pose after signing a memorandum of understanding at Hana Bank’s headquarters in Seoul, Sept. 12. Courtesy of Hana Bank

Hana Bank, along with the Ministry of Trade, Industry and Energy, HL Group and the Korea Trade Insurance Corp. (K-SURE), have launched a 100 billion won ($75 million) export financing assistance package to support Korean automotive suppliers struggling due to U.S. tariff policies, the lender said Sunday.

The public-private initiative seeks to mitigate fallout from recent U.S. tariff uncertainties, including concerns about the vulnerability of Korea’s export supply chains and the need to protect small and mid-sized manufacturers.

The memorandum of understanding (MOU) for the partnership was inked at Hana Bank’s headquarters in Seoul on Sept. 12, with high-level officials from all parties in attendance.

The agreement seeks to help key suppliers within HL Group’s network, many of whom face uncertainty due to new U.S. tariff policies that have had significant impact on auto parts exporters.

The financing program includes 100 percent coverage of guarantee fees, lower borrowing rates, lower foreign exchange transaction fees and favorable exchange rates for the suppliers.

Hana Bank and HL Group have committed a combined 8 billion won — 6 billion won from Hana and 2 billion won from HL — in a joint capital contribution to back the initiative.

This move follows a similar agreement in August made between Hana, Hyundai Motor, Kia and K-SURE.

“This is more than financial support. It’s about maintaining the competitiveness of Korea’s auto industry amid growing geopolitical volatility,” said Hana Bank CEO Lee Ho-seoung during the MOU signing.

“The partnership highlights the increasing role of the financial sector in stabilizing Korea’s trade-dependent economy amid shifting global trade dynamics. We will continue to strengthen public-private cooperation to help exporters navigate global uncertainty.”