POSCO INTERNATIONAL : to pave the way through financial support for small but strong Korean exporters

POSCO INTERNATIONAL

to pave the way through financial support for

small but strong Korean exporters

- Signed an agreement with the Export-Import Bank of Korea on Dec. 13th and selected S&S INC as the first recipient of the sponsorship

- Recipients leverage POSCO INTERNATIONAL's credit rating to improve fund liquidity and work convenience

- A significant step in building a Korean export economy ecosystem through coexistence management between large enterprises and small but strong players

POSCO INTERNATIONAL (CEO: Joo Si-Bo) joins hands with the Export-Import Bank of Korea (hereinafter "Korea Eximbank") to provide customized financial support for small yet strong export players.

POSCO INTERNATIONAL CEO Joo Si-bo, Korea Eximbank CEO Yoon Hee-Sung, and CEO Yang Joon-Ho of S&S INC, the recipient of the sponsorship, signed the Financial Support Agreement for Supply Chain Stabilization and Coexistence on Dec. 13th at the head office of Korea Eximbank in Yeouido, with key officials from the three companies attending the event.

사진2. 업무협약식 단체사진 촬영하는 포스코인터내셔널 주시보 대표이사, 수출입은행 윤희성 행장, S

The purpose of this business agreement is to help small and medium-sized enterprises with excellent technology and weak network foundation gain a foothold in export markets and provide necessary financing.

The details of the agreement include ▲strengthening the value chain competency of Korean companies in the global supply chain, ▲enhancing win-win management between large and small enterprises, and ▲providing financial support until 2025 to vitalize exports through Korea Eximbank's digital supply chain factoring program*.

*Digital supply chain factoring program: Korea Eximbank's online platform, scheduled to launch in December 2022, to purchase accounts receivables from small but strong export companies in advance based on the buyer's credit rating

Selected as the recipient of the sponsorship this time, S&S INC is a company with an expertise in the production of forged parts for automobiles specializing in producing major forged parts of automobile transmissions and reducer parts for electric vehicles. The company has been exporting most of its products to North America, Europe and Asia through its cooperation with POSCO INTERNATIONAL.

Last year, the export performance of Korean SMEs reached a record high of $228.4 billion. However, many companies still experience difficulties securing supply chains due to rapidly worsening logistics and raw material crisis this year, and are in desperate need of support from the government and various sectors.

Thanks to this agreement, S&S INC, the product supplier, will be able to take advantage of the high credit rating of the buyer, POSCO INTERNATIONAL, without having to go through a separate credit evaluation.

In addition, the agreement is expected to improve both liquidity and work convenience as S&S INC will be able to liquidate its accounts receivables, in advance and without paperwork and in-person visits, through the corporate finance-exclusive digital platform created by Korea Eximbank.

Last year, POSCO INTERNATIONAL generated a total of KRW 30 billion for a coexistence cooperation fund. Using this fund, POSCO INTERNATIONAL consistently puts its win-win philosophy to practice by selecting 40 small and medium-sized venture companies to become prospective leaders of the Korean industry, and providing intensive support to these companies as they establish overseas business infrastructure and develop future businesses, including setting up networks with brokering buyers and incorporating branches.