POSCO and KB Kookmin Bank Introduce Supply Chain Finance to Support Client Liquidity in the Steel Industry

POSCO has partnered with KB Kookmin Bank to launch a dedicated supply chain finance (SCF) service aimed at enhancing liquidity for its steel industry clients. The initiative integrates KB Kookmin Bank’s lending programs directly into POSCO’s digital order and delivery platform, 'My POSCO,' to streamline the financing process. By addressing challenges such as delayed payment collection and collateral shortages, the program seeks to stabilize the steel supply chain and reduce financial burdens for participating companies.

POSCO and KB Kookmin Bank formalized their partnership on July 9 through a memorandum of understanding (MOU) signed at the POSCO Center in Seoul. The ceremony featured POSCO President Lee Hee-geun and KB Kookmin Bank President Lee Hwan-joo, who committed to developing a supply chain finance (SCF) service tailored for the steel industry. This service is designed to bridge the gap between manufacturing and distribution by providing capital liquidity to client companies that may face financial hurdles due to delayed payments or a lack of traditional collateral.

The collaboration will result in a digital integration between KB Kookmin Bank’s lending systems and POSCO’s 'My POSCO' platform, an integrated order and delivery hub. This 'one-stop' digital process is expected to launch within the year, allowing clients to apply for and receive loans directly through the platform. In addition to streamlined access to credit, the bank will provide preferential interest rates and non-financial support, such as ESG consulting, while managing the collection of sales proceeds to mitigate financial risks for all parties involved.

Leaders from both organizations emphasized that the agreement transcends simple financial cooperation, aiming instead to create a representative model for mutual growth between the manufacturing and financial industries. KB Kookmin Bank plans to leverage this partnership to build a comprehensive financial model for the steel supply chain, which may include expanded services in deposits and foreign exchange. Once the technical integration is finalized, the partners will hold joint briefings to introduce the program's specific liquidity benefits to POSCO's broader client base.