Dongkuk Steel Mill Co., Ltd., Bank of Hope and Hana Card partner on supply chain finance; service set to launch this year

[Financial News] Dongkuk Steel Mill Co., Ltd. is teaming up with Bank of Hope and Hana Card to build a supply chain finance service for member companies of Steel Shop, its online steel sales platform. The goal is to launch later this year a system linking business-to-business (B2B) loans with payments, allowing transactions to be handled in one go from loan disbursement through settlement.
Dongkuk Steel Mill Co., Ltd. said on the 22nd that it had signed a business agreement to support companies purchasing through Steel Shop at Bank of Hope’s headquarters in Jung-gu, Seoul, on the 21st.
Attendees at the agreement-signing ceremony included Jinsu Kwak, head of sales at Dongkuk Steel Mill Co., Ltd.; Seo Yu-seok, vice president of Bank of Hope’s Corporate Group; and Lee Wan-geun, executive vice president of Hana Card’s Sales Group.
Under the agreement, the three companies will develop a dedicated co-branded debit card for Steel Shop member companies and a ‘single-transaction’ payment system. The single-transaction system links Bank of Hope’s B2B credit-line loans with Steel Shop’s payment system.
Previously, Steel Shop member companies had to submit documents or use online banking to secure funds for purchases. Once the new system is introduced, they will be able to handle everything from loan disbursement to settlement simply by clicking the payment button on Steel Shop.
The three companies are also working to offer special preferential interest rates to Steel Shop member companies. The move is intended to ease the funding burden on small and mid-sized purchasing companies amid fluctuations in the steel market. The specific preferential rates have not been disclosed.
Dongkuk Steel Mill Co., Ltd. plans to launch the service later this year after working with Bank of Hope and Hana Card to stabilize the system.
A Steel Shop representative at Dongkuk Steel Mill Co., Ltd. said, “We have put in place payment infrastructure that will ease funding burdens and enable the around 3,000 companies using Steel Shop to procure steel products smoothly,” adding, “We will continue to identify practical ways to support the mutual growth of the steel ecosystem.”

[email protected] Kim Mi-hee Reporter