Woori Financial Group has partnered with Korea Aerospace Industries (KAI) to establish a 2 trillion won ($1.48 billion) financial support system for South Korea’s aerospace sector, targeting small and medium-sized suppliers.
The agreement, signed May 9 with KAI, Korea Aerospace Industries Association, and Korea Technology Finance Corp. (KIBO), comes as Korean aerospace companies struggle to maintain liquidity amid intensifying global competition and supply chain disruptions.
Under the arrangement, Woori Bank will introduce a dedicated loan product for KAI partner companies, providing production funding based on purchase orders and electronic contracts. The bank will also support KAI’s corporate bond and commercial paper issuance while developing aerospace-specific investment products and venture capital funds.
Meanwhile, KIBO pledged to provide approximately 110 billion won ($81.5 million) in loans with preferential terms, including higher guarantee ratios for KAI partners.
The initiative marks Woori’s latest attempt to expand its influence in strategic industrial sectors while generating new revenue streams. Financial analysts note that aerospace lending carries significant risks, especially for smaller suppliers with limited track records.
Woori Financial Chairman Lim Jong-ryong indicated the group would help aerospace companies enhance technological competitiveness while adapting to global supply chain shifts.
