On April 16, 2025, the Small and Medium Venture Business Corporation (Joongjin Gong) and HD Hyundai Mipo signed a significant business agreement aimed at stabilizing the shipbuilding industry ecosystem in Ulsan, South Korea. This collaboration was marked by a ceremony attended by around 30 participants, including Kang Seok-jin, Chairman of Joongjin Gong, and Kim Hyung-kwan, CEO of HD Hyundai Mipo.
The agreement, known as the "Win-Win Growth Network Loan Business Agreement," will see Joongjin Gong provide approximately 200 billion won (around $150 million) in liquidity to cooperative small and medium-sized enterprises (SMEs) within the shipbuilding sector. This financial infusion is intended to support the recovery and competitiveness of the shipbuilding industry, which is a key sector for the region.
According to the details of the agreement, Joongjin Gong will offer financial support through a structured loan program designed for cooperative SMEs. This program, referred to as the "Win-Win Growth Network Loan," allows Joongjin Gong to provide short-term production funds to these SMEs based on purchase orders from larger companies. After the SMEs fulfill their orders, the ordering companies will transfer their sales bond rights to Joongjin Gong to repay the loans.
Kim Hyung-kwan expressed optimism about the agreement, stating, "The agreement with Joongjin Gong is an opportunity to secure liquidity for HD Hyundai Mipo's cooperative SMEs. We anticipate that this will enable these companies to reinvest in productivity improvements and strengthen their competitiveness further." His comments reflect a broader sentiment within the industry regarding the necessity of financial support to navigate current market challenges.
Kang Seok-jin echoed this sentiment, emphasizing the agreement's potential to serve as a model for collaboration between large and small businesses. He remarked, "This agreement will be a representative win-win model for large and small businesses, and we will actively support the stable financial security of our customer companies. Our aim is to lead the stabilization of the supply chain and job creation in this vital regional industry." This commitment highlights the importance of collaborative efforts in fostering economic resilience.
In addition to providing financial support, the agreement also includes initiatives aimed at job creation. Utilizing the Enterprise Human Resources Center and the foreign student employment platform known as "K-work," the partnership seeks to create employment opportunities in the shipbuilding sector. This multifaceted approach is designed not only to enhance liquidity for SMEs but also to bolster the overall workforce in the region.
The collaboration is particularly timely, as the shipbuilding industry has faced numerous challenges in recent years, including fluctuating demand and increased competition from international markets. By injecting significant liquidity into cooperative SMEs, Joongjin Gong and HD Hyundai Mipo aim to stabilize the supply chain and restore confidence among stakeholders.
Industry experts have noted that the partnership represents a proactive step towards revitalizing the Ulsan shipbuilding sector, which has long been a cornerstone of the local economy. The focus on cooperative growth is seen as a vital strategy for ensuring that smaller companies can thrive alongside larger firms, creating a more balanced and sustainable economic environment.
Furthermore, the agreement is part of a broader initiative to promote the shipbuilding industry's competitiveness on a global scale. As South Korea continues to be a leader in shipbuilding technology and innovation, partnerships like this are essential for maintaining its position in the global market.
In conclusion, the signing of the "Win-Win Growth Network Loan Business Agreement" marks a significant development for the Ulsan shipbuilding industry. With a commitment to providing substantial financial support and fostering job creation, Joongjin Gong and HD Hyundai Mipo are setting a precedent for collaboration that could serve as a model for other sectors facing similar challenges. As both parties work towards stabilizing the shipbuilding ecosystem, the focus remains on ensuring the long-term viability and competitiveness of this crucial industry.
