STX Offshore and Shipbuilding Co. on Tuesday set up a 3.8 billion won ($35 million) fund to give low-interest loans to suppliers in collaboration with two local banks.

The new shared-growth fund will be used to extend loans to STX Offshore and Shipbuilding’s suppliers at rates between 1.9 percentage point and 2.5 percentage points lower than the benchmark rates, the company said.

The fund was established with a 1.9 billion won contribution from STX Offshore and Shipbuilding, 1.2 billion won from Industrial Bank of Korea and 7 billion won from Kyongnam Bank.

The Industrial Bank of Korea will operate 2.4 billion won of the fund, and Kyongnam Bank will be responsible for the remainder. In addition to contributing and operating part of STX Offshore and Shipbuilding’s shared-growth fund, the Industrial Bank of Korea has been offering low-interest loans equivalent to one sixth of the value of a company’s supply contract for those working with STX since 2006, the company said.

By Choi He-suk  (cheesuk@heraldcorp.com)