Sustainability
Shared Growth Fund
The investment funds are provided at low interest rates for managerial stability, quality improvement, and productivity upgrade for partner companies against their deposits with financial companies.
| Category | Classification |
|---|---|
| Interest Rate |
- Preferential product providing lower interest rates to a partner company recommended by HYUNDAI STEEL. - Loan that does not need real estate mortgage required by ordinary banks. |
| Loan Recipient | - Partner company of HYUNDAI STEEL |
| Loan Period | - 12 months (extendable until maturity of deposit period) |
| Interest Subsidy | - Credit loan (loan interest may be further lowered according to the arranged details of loan) |
| No Collateral Required |
- Deposit of Hyundai Steel Partnered Growth Fund contribution to a commercial bank - Interest rate for partner companies subsidized with interests accruing from the deposit - Calculation of interest subsidy at the end of each month |
| Loan Interest | - Differential application according to credit rating and financial evaluation for each company (fixed interest rate) |
Win-Win Bridge Loan
This is a financial support program for Hyundai Steel’s partner companies, each of which can take loans of up to 80% of a contract price for the purchase of raw materials and production costs through a purchase contract with Hyundai Steel. It comes with interest rates lower than regular credit loans, while the loan will be repaid with a middle payment and remaining balance due from large corporations.
| Category | Classification |
|---|---|
| Interest Rate | - Lower interest rate than regular credit loans (based on BB+: -2.4% compared to regular credit loans, Collection of interest: post-collected each month) |
| Loan Limit |
- Loan up to 80% of ordered amount - Support of written guarantee from credit guarantee fund or technology finance corporation (Up to 10 billion, discount of security commission) |
| Loan Operation Method | - Purchase fund, production fund |
| Repayment of Loan | - Repayment of loan with the delivery cost paid by the large corporation, signing of bond transfer contract between the company and the Industrial Bank of Korea |
Funding for Shared Growth Investment
Hyundai Steel earmarks its funds for shared growth investments to the Large and Medium Enterprise Cooperation Foundation in financial support of related project costs for raising the competitiveness of partner companies. Following the government’s announcement of the plans for promoting shared growth among large and SMEs, the amendment to the Enforcement Decree of The Restriction of Special Taxation Act instituted a tax deduction for any win-win funds. Financial sources used for win-win d purposes of large and medium enterprises are contributed to provide project costs on the business of usage purpose followed by the Enforcement Decree of the Restriction of Special Taxation Act.
| Category | Fields that Can Use the Fund |
|---|---|
| R&D Support |
- Support of purchase costs for samples, parts, raw materials and reagents used by a partner SME for R&D - Support of facility investment for research and test by a cooperative small and medium enterprise (facility in accordance with Article 10 Paragraph 1) - Cost support using escrow of technology materials - Support of patent right application protection cost of a cooperative small and medium enterprise - Support of required cost while transferring the patent owned by large corporation to a cooperative small and medium enterprise |
| HR Development Support |
- Manpower recruiting cost support and educational training cost support of a cooperative small and medium enterprise - Support of costs required for training on a cooperative small and medium enterprise employee (in case of consignment of training to a school in accordance with Higher Education Act Article 2 or a lifelong education agency in accordance with Lifelong Education Act Article 2 Subparagraph 2) - Educational training facility investment support of a cooperative small and medium enterprise |
| Productivity Improvement Support |
- Support of productivity improvement facility (facility, equipment and system in accordance with Article 21) by a cooperative small and medium enterprise - Support of required cost while transferring the production equipment owned by large corporation to a cooperative small and medium enterprise - Support of technology management consultation cost on a cooperative small and medium enterprise - Support on the implementation of performance sharing system in accordance with Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises - Investment support on the workplace retained facility or workplace sports facility of a cooperative small and medium enterprise |
| Foreign Market Advancement Support | - Foreign market survey and foreign market sales promotion activity support, foreign business contract and foreign procurement market participation support and foreign event joint participation cost support, etc. |
| Greenhouse Gas Reduction and Energy Saving Support |
- Facility installation or technology introduction support for greenhouse gas reduction and saving energy by a cooperative small and medium enterprise - Facilities set forth by the decree of the Ministry of Strategy and Finance as a facility that has applied greenhouse gas reduction technology - Energy saving type facility in accordance with Article 22-2 Paragraph 1 Subparagraph 1. - Emergency operation fund support for preventing a short-term fund pressure due to discontinuance during the energy efficiency equipment replacement period by a cooperative small and medium enterprise - Data monitoring and measurement system construction support necessary for operation of energy management system in accordance with Energy Use Rationalization Act |
Partner Company Lending & Client Company Surety Commission Subsidies
HYUNDAI STEEL is providing or lending funds directly to the partner company free of charge to give actual benefits to the partner companies. It is supporting shed facility investment funds to the iron scrap partner companies free of interest and supporting surety commission free of charge to the client companies
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- Motor
- Automotive Technology
- Steel
- Finance
- Others
