SK Hynix is partnering with the South Korean government and four major banks to provide 2 trillion won ($1.5 billion) in loan guarantees for domestic semiconductor suppliers. The initiative aims to ease financing pressures on smaller materials, parts and equipment companies facing high interest rates and economic uncertainty.
SK Hynix and the banks will contribute 100 billion won. The state-run Korea Trade Insurance Corp. will leverage that contribution to provide the full guarantee amount.
Suppliers recommended by SK Hynix will be eligible for larger loans and extended guarantee periods. Their interest rates can be reduced by up to 2.5 percentage points.