POSCO and KB Kookmin Bank partner to launch supply chain finance service

South Korean steelmaker POSCO and KB Kookmin Bank have signed a memorandum of understanding to launch a dedicated supply chain finance service for the steel industry. The initiative aims to enhance liquidity and provide financial support to companies operating across the steel production and distribution chain. This partnership is specifically designed to stabilize the supply chain during a prolonged downturn in the global steel market.

POSCO and KB Kookmin Bank are collaborating to introduce a supply chain finance system that connects financial institutions directly with participants in the steel production and distribution network. The "POSCO × KB Supply Chain Partnership Package" is scheduled for launch later this year and is intended to address the financial challenges faced by partner firms. By integrating these services, the companies aim to provide a more resilient financial foundation for the domestic steel sector.

The new financing service will be fully integrated into POSCO’s existing MyPOSCO digital platform, allowing customers to manage their financial needs through a single online interface. The comprehensive package includes several key components: preferential-interest corporate loans, customized financial products, and specialized consulting for import and export finance. Additionally, the service will offer support for trade insurance guarantees specifically for exporters and provide access to preferential interest-bearing accounts.

This strategic move is a direct response to the current economic climate, where the steel industry is facing a sustained downturn. POSCO expects the initiative to significantly reduce financing costs for its partners while improving overall payment liquidity. By strengthening the financial ties between the steelmaker and its suppliers and distributors, the partnership seeks to enhance the long-term stability and cooperation of the entire South Korean steel supply chain.