Park Han-sol reports on Korea's financial regulators, along with fintech and insurance. She previously wrote about the art world, from biennales and exhibitions to fairs and auctions, with a focus on Seoul and the figures shaping the scene. Before joining The Korea Times, she spent a year at ABC News' Seoul bureau, contributing to coverage of major Asia-Pacific events.
Korea Eximbank partners with Mongolia to boost Korean consumer goods exports
Export-Import Bank of Korea (Korea Eximbank) Chairman and CEO Hwang Ki-yeon, left, and Trade and Development Bank of Mongolia CEO Orkhon Onon, right, pose after signing a memorandum of understanding on a $30 million on-lending facility to support exports of Korean consumer goods at the Government Palace in Ulaanbaatar, Thursday, in the presence of President Lee Jae Myung and Mongolian President Ukhnaagiin Khurelsukh. Courtesy of Korea Eximbank
By Park Han-sol
The Export-Import Bank of Korea (Korea Eximbank) signed a memorandum of understanding with Mongolia's Trade and Development Bank (TDB) to provide a $30 million on-lending facility aimed at boosting exports of Korean consumer goods, the state-run lender said Sunday.
Under the arrangement, Korea Eximbank will extend financing to TDB, which will then lend the funds to local importers purchasing Korean products. The indirect financing scheme is intended to improve access to trade finance while supporting bilateral commerce.
The agreement comes as demand for Korean consumer goods and K-culture continues to grow in Mongolia. TDB, which operates more than 90 branches nationwide, serves a broad base of importers of Korean food, beverages, cosmetics and other products.
The facility marks Korea Eximbank's first on-lending program for Mongolia since the country's 2017 foreign exchange crisis. The lender said it expects the program to help Korean exporters expand their presence in the market while easing funding constraints for companies already operating there.
Leveraging TDB's nationwide network, Korea Eximbank aims to channel financing more efficiently to local buyers, particularly benefiting small and midsized Korean exporters seeking to expand into the country.
"Mongolia is one of the world's resource-rich economies and a strategic gateway linking Central Asia and Northeast Asia," Korea Eximbank CEO Hwang Ki-yeon said. "We expect the on-lending program to boost exports of Korean products while diversifying trade between our two countries, including imports of critical minerals. With Korean retail and franchise brands continuing to expand in Mongolia, we will maintain policy financing to strengthen the competitiveness of Korean consumer goods."
Korea Eximbank currently operates around $8 billion in on-lending credit lines through 24 partner banks across 10 countries. It said the program will gradually expand beyond traditional export sectors such as automobiles and electronics to support a broader range of K-culture-related industries in emerging markets.