Hyundai Heavy Industries Co. and its two affiliated shipbuilders agreed to expand their fund to support small partner companies to 300 billion won ($263 million) as part of efforts to seek shared growth.

Hyundai Heavy, Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co. inked a deal with the Industrial Bank of Korea on Monday to offer loans at lower-than-market interests to their suppliers.

First and second-tier suppliers of Hyundai Heavy Industries Group will be able to take out loans of up to 2 billion won each from IBK at lending rates lower than market rates by up to 2 percent. 

The conglomerate has run a “shared growth” fund worth 100 billion won with IBK since 2009, benefiting 224 partner firms.

Hyundai Heavy decided to triple the size of the fund to help more financially squeezed small and medium-sized enterprises in need of money to invest in facilities or research and development.

“We expect the deal to greatly help SMEs that are struggling to get financial support despite their excellent technology and high growth potential,” a Hyundai Heavy official said.

Hyundai Heavy had been chosen by the Fair Trade Commission in July 2010 as a leading company in promoting mutual growth and fair transactions.

The world’s largest shipbuilder has also supported SMEs’ product development with a 30-billion-won fund it created with the Small and Medium Business Administration last February.

Last month, Hyundai Heavy announced that it will push forward mutual growth by refraining from entering non-core businesses, pulling out from industries deemed appropriate for SMEs, and setting up related internal panels.

By Kim So-hyun (sophie@heraldcorp.com)