Hyundai Motor Group will contribute 15 billion won (US$11.3 million) to the Korea Credit Guarantee Fund (KCGF) to support the global business of its partner companies, South Korea’s financial regulator said Thursday.

Under the deal, the KCGF will provide a total of 300 billion won worth of credit guarantee to partner companies of Hyundai Motor and its affiliate Kia Corp., according to the Financial Services Commission (FSC).

The partner companies can use the credit guarantee as collateral when borrowing money from banks, a KCGF official said.

The move is a follow-up to the government’s latest financial aid package worth 23 trillion won meant to boost the country’s ailing export sector.

South Korea’s exports plummeted 16.5 percent on-year to $50.33 billion in July. They marked the 10th consecutive month of decline, largely due to weak demand for semiconductors and a global economic slowdown.

Source: Yonhap News Agency