Posco is expanding financial support for its trading partners, aiming to stabilize supply chains and strengthen export competitiveness amid global tariffs and an oversupply of Chinese steel.
The program, launched in January, is structured in partnership with Industrial Bank of Korea and Korea Trade Insurance (K-Sure). Posco and IBK jointly contribute 20 billion won to K-Sure, which then provides preferential guarantees worth about 400 billion won to participating trading companies.
IBK offers additional support, including preferential loans with interest rates up to 2 percentage points below market levels and reduced guarantee fees.
The program also enables collateral-free financing, with preferential guarantees and interest rates maintained for up to three years. It covers the entire operating cycle, from procurement and production to final payment collection.
Steel traders including Kukje Steel and TGS Pipe said the program has improved liquidity and operational flexibility.
“As a company with high export exposure, the ability to respond financially to external changes is critical,” a Kukje Steel official said. “Securing liquidity has been a major support as global markets shift and domestic demand weakens.”
TGS Pipe said the funding helped adjust production schedules for exports and manage cash flow amid volatile conditions.
Posco has incorporated the initiative into its broader financial support framework, including low-interest loan funds and ESG mutual growth funds worth about 700 billion won, bringing total support to more than 1 trillion won.
“It is meaningful that our support is translating into tangible results for partner companies,” a Posco official said. “We will continue to strengthen the steel ecosystem and enhance export competitiveness.”
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