[News] Samsung Reportedly Seeks USD 3.6 Billion Loan from State-Run Bank for Chip Investment

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According to a report from Korean media outlet Korea Economic Daily (KED), South Korean tech giant Samsung Electronics is looking to borrow up to KRW 5 trillion (approximately USD 3.6 billion) from the state-run Korea Development Bank (KDB) to finance its expansion of chip production facilities both in Korea and abroad.

According to sources cited in the same report, Samsung is in the final stages of negotiations with the KDB regarding the exact amount of the loan and the interest rates. Additionally, the report mentioned that Samsung’s competitor, SK Hynix, is also considering borrowing up to KRW 3 trillion from the KDB for its chip investments.

Regarding this, the bank is reportedly prepared to extend up to KRW 5 trillion to Samsung at an interest rate of about 3.5% per year. If finalized, this would be the first time in two decades that Samsung has borrowed such a large sum.

Notably, according to a previous report from the Chosun Daily, starting from July, the South Korean government will begin offering incentives and subsidies to semiconductor companies, launching a 26 trillion won (USD 19 billion) funding program to support the industry.

Initially, South Korea will start with an 18 trillion won (USD 12.94 billion) investment program, including preferential loans and investment funds. According to a statement from the Ministry of Economy and Finance, eligible companies will be able to borrow from a 17 trillion won low-interest loan program.

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(Photo credit: Samsung)