KB Kookmin Bank has signed a memorandum of understanding with Korea Aerospace Industries, Korea’s sole integrated aircraft manufacturer, to strengthen the competitiveness of Korea’s strategic aerospace sector and support KAI’s global expansion efforts, the lender said Sunday.

The signing ceremony took place Friday at KB Kookmin’s headquarters in Seoul with KB Kookmin CEO Lee Hwan-ju and KAI CEO Kang Goo-young in attendence.

Under the agreement, KB Kookmin will provide up to 1 trillion won ($703 million) in financial support to KAI. This includes investment backing for future projects, export financing, and capital loans related to exports and facility investments.

“Korea’s aerospace industry requires advanced technology and long-term investment, making stable financial support essential,” the KAI CEO said. “This agreement will reinforce our foundation for future investment and global expansion.”

The bank also plans to implement growth-oriented financing for KAI’s partner companies, encouraging shared development with small and medium-sized enterprises in the supply chain.

“It is meaningful to partner with KAI, a leader in Korea’s aerospace industry. We hope this agreement goes beyond financial support to become a cornerstone for enhancing the industry’s global competitiveness," KB Kookmin CEO said.

By Chung Hye-lim (hyelimchung@heraldcorp.com)