POSCO Partners with KB Kookmin Bank on Supply Chain Finance

POSCO Holdings has entered into a memorandum of understanding with KB Kookmin Bank to introduce a dedicated supply chain finance service for customers within the steel business ecosystem. The collaboration aims to alleviate financial risks and liquidity challenges for steel buyers by providing streamlined loan support and preferential interest rates. This initiative represents a strategic effort to bolster the domestic industrial supply chain through integrated financial technology and ESG consulting services.

POSCO and KB Kookmin Bank formalized their partnership during a signing ceremony at the POSCO Center in Seoul, attended by POSCO President Lee Hee-keun and KB Kookmin Bank President Lee Hwan-ju. The agreement establishes a supply chain finance framework designed to link companies across the steel manufacturing and distribution spectrum with institutional banking resources. This win-win model is specifically intended to assist customers struggling with funding liquidity due to time gaps in payment collection or collateral limitations, particularly as the steel industry faces a prolonged market downturn.

Under the terms of the agreement, KB Kookmin Bank will manage the collection of sales payments and provide a comprehensive range of services, including corporate loan support and environmental, social, and governance (ESG) consulting. The bank intends to use this partnership to lead in building financial models that support industrial cooperation while generating synergy through cross-selling products like deposits and currency exchange. POSCO President Lee Hee-keun noted that the agreement marks a significant milestone in evolving the company's unique cooperation model, aiming to set a representative example of manufacturing and financial industries working together.

To facilitate ease of use, the two organizations plan to launch a digital integration within the year that embeds KB Kookmin Bank’s loan programs directly into the My POSCO platform. This one-stop system will enable customers to handle the entire financing lifecycle, from application to execution, without leaving the platform. POSCO expects that this streamlined access will provide customers with industry-lowest preferential interest rates by minimizing markup rates, thereby reducing the overall financial burden on participants in the steel supply chain.