SK Hynix, South Korea’s government and four major banks launch a $1.5 billion loan-guarantee programme to improve financing access for domestic semiconductor materials, components and equipment suppliers.
South Korean semiconductor giant SK Hynix has partnered with the government and four major banks to provide 2 trillion won (approximately $1.5 billion) in loan guarantees to domestic semiconductor suppliers. The initiative aims to improve access to financing for small and medium-sized companies supplying semiconductor materials, components and equipment, strengthening South Korea’s domestic chip supply chain.
SK Hynix and the Ministry of Trade, Industry and Resources signed an agreement at the company’s semiconductor cluster promotion centre in Yongin, south of Seoul. Under the programme, SK Hynix and four major banks-KB Kookmin, Shinhan, Woori and Hana-will contribute a combined 100 billion won. The state-run Korea Trade Insurance Corporation (K-SURE) will provide loan guarantees worth up to 2 trillion won, equivalent to 20 times the initial contribution.
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The programme is designed to help suppliers overcome financing constraints, particularly those seeking funds for facility investment and production expansion. Companies recommended by SK Hynix and approved under the scheme will receive higher loan limits, interest-rate reductions of up to 2.5 percentage points and an extended guarantee period of three years, compared with the standard one-year period.
The maximum guarantee limit for semiconductor suppliers will also be set 50% higher than that available to companies in other industries. The arrangement is intended to make borrowing more accessible and reduce financing costs for businesses supporting semiconductor manufacturing.
The initiative forms part of South Korea’s broader effort to extend the benefits of the semiconductor industry’s growth to smaller suppliers. Semiconductors accounted for 42% of the country’s total exports during the first three quarters of 2026, underlining the sector’s importance to the national economy.
Industry Minister Kim Jung-kwan said the government planned to expand financial support for the semiconductor sector to more than 5 trillion won. Authorities also intend to extend similar supply-chain financing measures to defence, nuclear energy and biotechnology, with total support potentially reaching 10 trillion won by the end of the year.
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SK Hynix CEO Kwak Noh-jung emphasised that a strong domestic supplier ecosystem is essential to maintaining South Korea’s global semiconductor competitiveness. The initiative is expected to help suppliers invest in facilities, improve production capabilities and strengthen their role in the global chip supply chain.