- Expansion of cooperative fund operation funds from 40 billion to 82 billion and upward adjustment of discount and deposit interest rates.
- Enhancing fair trade and mutual cooperation to foster joint growth with partner companies.
Hyundai Development Company plans to strengthen collaborative management with its partner companies by increasing the operating funds for mutual growth funds for financial support to partner companies and raising the interest rate reduction from October onwards.
To promote mutual growth and co-prosperity with partner companies, Hyundai Development Company has significantly increased the size of the operating funds for mutual growth funds, which were operated on a scale of 4 billion KRW last year, to a total of 82 billion KRW, with 620 billion KRW from KEB Hana Bank and 200 billion KRW from Woori Bank, enabling the supported partner companies to increase by more than double. Since initiating a mutual growth fund of 2 billion KRW in 2010, Hyundai Development Company has expanded the fund size every year and established mutual growth funds of 40 billion KRW last year to provide financial support to partner companies.
Furthermore, the interest rate reduction has also been adjusted upwards. The existing interest rate reduction, which was 1.68% for KEB Hana Bank and 1.55% for Woori Bank when partner companies borrowed through the mutual growth fund, has been increased to 2.04% (an increase of 0.36% compared to the previous rate) and 2.10% (an increase of 0.55% compared to the previous rate), respectively. With this adjustment, the interest burden on partner companies is expected to decrease, with interest rates for general collateral loans in the 3% range and credit loans in the 5% range.
Hyundai Development Company stated, "Through the extension of the mutual growth fund agreement, we have significantly increased the fund deposits by 42 billion KRW compared to before, allowing more partner companies to benefit from financial support." They also mentioned, "We will continue to enhance fair trade and cooperative collaboration to become a company that grows together with partner companies."
Additionally, apart from this, Hyundai Development Company provides online education and job training free of charge for financial support and partner company employees. Moreover, they are continuing their support activities for fair trade and cooperative collaboration by providing various information and insights through regular "Mutual Growth Letters" to partner companies.