South Korea launched a 40 billion won guarantee program to boost shipbuilding export competitiveness and help small and mid-sized companies grow, the Ministry of Trade, Industry and Energy said in a Friday release.

Under the program, HD Hyundai Heavy Industries (KRX:329180) and Hana Bank will jointly contribute funds, while K-Sure will provide guarantees. The total contribution amounts to 28 billion won, enabling the Korea Trade Insurance Corporation to extend guarantees worth up to 40 billion won.

Eligible companies--recommended by HD Hyundai Heavy Industries--can receive loans of up to 4 billion won per firm at preferential interest rates discounted by up to 2.4 percentage points, with maturities of up to three years, the release said.

Shares of HD Hyundai Heavy Industries rose nearly 3% in recent trade.