South Korea is taking strong steps to protect its auto parts exporters from rising US tariff threats. Hana Bank partnered with HL Group and the Korea Trade Insurance Corporation to provide extensive export financing support. This effort aims to stabilize the operations of exporters likely to face difficulties due to tariff measures.
Hana Bank explained that the partnership focuses on reinforcing the export supply chain of South Korea’s automobile industry. By providing liquidity support through export financing, the initiative promotes cooperation between public and private sectors while helping exporters maintain competitiveness.
Under the deal, Hana Bank contributes 6 billion won ($4.3 million), and HL Group adds 2 billion won. Together, they create a financing package worth approximately 100 billion won. The package covers guarantee fees, offers low-interest loans, and reduces foreign exchange costs, ensuring exporters have smoother financial operations.
The bank’s efforts build on a previous agreement involving Hyundai Motor, Kia, and the Korea Trade Insurance Corporation. That deal provided 630 billion won in liquidity to strengthen the auto industry’s export supply chain amid external uncertainties caused by US tariffs. By connecting these initiatives, South Korea shows a clear commitment to supporting its exporters.
Hana Bank also highlighted a broader financial support plan of 30 trillion won. This plan targets small and medium-sized enterprises and small business owners facing potential impacts from US tariffs. By combining broader liquidity measures with export financing, the bank helps maintain economic stability and sustain export competitiveness.
CEO Lee Ho-sung emphasized that Hana Bank will continue working closely with both private and public institutions. The bank aims to leverage its foreign exchange capabilities to help South Korean exporters stay competitive globally.
Furthermore, experts suggest that these moves will give South Korea a significant advantage in navigating global trade uncertainties. Exporters benefit from increased liquidity and reduced costs, allowing them to focus on production and market expansion. Meanwhile, public-private collaboration strengthens the resilience of the country’s industrial sector against external shocks.
Through these measures, South Korea demonstrates proactive leadership in supporting its export industry. By continuously adapting financial strategies, the country ensures that its businesses remain strong despite international tariff pressures. These initiatives are critical for maintaining the competitiveness of South Korea’s automobile and auto parts sectors.
