Yongin:South Korean chipmaker SK hynix Inc. has announced a partnership with the government and major banks to provide 2 trillion won (US$1.5 billion) in loan guarantees aimed at bolstering local semiconductor suppliers and strengthening the country's chip supply chain.

According to Yonhap News Agency, the initiative was formalized through an agreement between SK hynix and the Ministry of Trade, Industry and Resources at the semiconductor cluster promotion center in Yongin. The agreement involves SK hynix and four major banks contributing a total of 100 billion won to the program, while the Korea Trade Insurance Corp. (K-SURE) will offer loan guarantees up to 2 trillion won for suppliers of semiconductor materials, parts, and equipment.

Suppliers recommended by SK hynix will benefit from increased loan limits, reduced interest rates by up to 2.5 percentage points, and extended guarantee periods from one to three years. This program is part of a broader government strategy to enhance export supply chains by improving financing access for smaller companies collaborating with major manufacturers.

The government had previously allocated 2.4 trillion won in loan guarantees for industries such as automotive, shipbuilding, and steel. The current program represents the largest financial package for a single sector, with plans to expand chip sector support to over 5 trillion won, alongside increased research, investment, and workforce training.

Industry Minister Kim Jung-kwan indicated that the government aims to extend similar support to the defense, nuclear energy, and biotech sectors, targeting a total support package of around 10 trillion won by the end of the year. SK hynix CEO Kwak Noh-jung emphasized the critical role of a robust semiconductor supply chain in maintaining global competitiveness and committed to fostering closer cooperation with domestic suppliers.