December 18, 2024

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Bank Woori Saudara CEO Kim Eung-chul (right) and PT Krakatau Posco President Director Jung Bum-soo pose for a photo during a signing ceremony in Jakarta, Indonesia, on Tuesday. (Woori Bank)

Korean lender Woori Bank announced Wednesday that its Indonesian subsidiary has signed a memorandum of understanding to provide financial support for PT Krakatau Posco, the Indonesian joint venture of Korea’s steel giant Posco.

With plans to offer $200 million in funding, Bank Woori Saudara will support PT Krakatau Posco in areas such as operating funds, supply chain financing, exchange rate hedging and employee loans. Posco is expected to enhance its cost efficiency and maintain financial stability amid increased competition from Chinese imports, the company said.

Recognizing the financial needs of Posco's local subsidiaries and partners, Bank Woori Saudara proposed customized financial support, including faster capital turnover in trade transactions.

“We plan to extend our support to Posco’s affiliates and partners,” said Kim Eung-chul, CEO of Bank Woori Saudara. “Beyond short-term financial assistance, we will continue to foster long-term mutual growth with Posco.”

By Park Min-ha (en23mp@heraldcorp.com)