SK hynix, gov't to provide 2 tln won in loan guarantees to semiconductor suppliers

South Korean semiconductor manufacturer SK hynix and the government have announced a 2 trillion won ($1.5 billion) loan guarantee program to bolster the country's chip supply chain. The initiative, signed by SK hynix and the Ministry of Trade, Industry and Resources at the company's semiconductor cluster promotion center in Yongin, near Seoul, involves four major banks contributing a combined 100 billion won.

In addition, the state-run Korea Trade Insurance Corp. will provide up to 2 trillion won in loan guarantees to suppliers of semiconductor materials, parts, and equipment. Suppliers approved by SK hynix will enjoy higher loan limits, interest rate reductions of up to 2.5 percentage points, and an extended loan period from one to three years.

This move is part of the government's broader strategy to strengthen export supply chains by enhancing financing opportunities for smaller companies working with major manufacturers. The government has previously allocated 2.4 trillion won in loan guarantees for the automotive, shipbuilding, and steel industries, with the latest program targeting semiconductors as the largest sector-specific package to date.

Industry Minister Kim Jung-kwan revealed plans to extend financial support to the chip sector to over 5 trillion won and broaden the initiative to defense, nuclear energy, and biotech sectors, potentially reaching a total of 10 trillion won by year-end. SK hynix CEO Kwak Noh-jung emphasized the critical role of a robust semiconductor supply chain in maintaining global competitiveness and pledged closer collaboration with domestic suppliers.