South Korean steelmaker POSCO has announced that it has signed a memorandum of understanding with KB Kookmin Bank to introduce a supply chain finance service designed to improve liquidity and financial support for companies operating within the steel supply chain.
Under the partnership, POSCO and KB Kookmin Bank will introduce a supply chain finance system linking financial institutions with companies participating throughout the steel production and distribution chain.
The companies said the service is intended to improve liquidity for partner firms and strengthen the stability of the steel supply chain amid the prolonged downturn in the steel industry.
MyPOSCO platform to provide one-stop financial services
The new financing service will be integrated into POSCO's MyPOSCO digital platform, enabling customers to access financing services through a single online system. According to the companies, the package will include preferential-interest corporate loans, customized financial products, import and export finance consulting, support for trade insurance guarantees for exporters, and preferential interest-bearing accounts.
Launch planned this year
POSCO and KB Kookmin Bank said they plan to launch the new POSCO × KB Supply Chain Partnership Package later this year.
POSCO said the initiative is expected to reduce financing costs and improve payment liquidity for partner companies while strengthening cooperation across South Korea's steel supply chain.
