Korea Eximbank seeks lead in Northeast Asia's Development
Korea Eximbank Chairman and President Lee Duk-hoon, third from right, poses with other participants at the Northeast Asia EXIM Banks Association inaugural meeting held in Yanbian on Sept. 18. / Courtesy of Korea Eximbank
By Choi Kyong-ae
The Export-Import Bank of Korea said Sunday that it would take the lead in promoting joint economic projects in the Northeast Asian region.
On Sept. 18, export-import banks from Korea, China, Russia and Mongolia signed an agreement in Yanbian, China, to launch the Northeast Asia EXIM Banks Association for financial cooperation in the region’s joint development projects, Korea Eximbank said in a statement.
“Through the multilateral agreement, we expect the countries to explore opportunities for joint development projects and the banks to join hands to financially support the projects in Northeast Asia,” Eximbank Chairman and President Lee Duk-hoon said in the statement.
The countries’ four export credit agencies (ECAs) signed the pact on the sidelines of the Greater Tumen Initiative (GTI) meeting held the same day in Yanbian, Jilin Province. The GTI meeting has been held annually over the past 15 years with the objective of promoting development in the area, which covers the four countries as well as North Korea.
The GTI program came into existence in 1992 as the Tumen River Area Development Program (TRADP) with assistance from the United Nations Development Programme (UNDP). It was later renamed the GTI program, the statement said.
North Korea was a member of the GTI plan but withdrew in November 2009 to protest the global community’s economic sanctions for its continued nuclear tests.
Despite the North’s withdrawal, an official at Korea Eximbank said, “The four countries are seeking cooperation on both the political and financial fronts to push several infrastructure development projects in the long term.”
Major projects include a railway system to connect Russia, China and possibly North Korea and container terminals at ports in Russia and China. Other projects will involve logistics infrastructure, and electricity production and transmission systems across the Maritime Province, the statement said.
To help support the projects, Korea Eximbank strengthened its research capabilities by establishing the Research Institute for North Korea Development in April this year.
“We will merge our financial know-how as a global player in the project financing market, with our enhanced research capabilities, to provide a feasible financial solution for prospective investors in this unexplored area,” Chairman Lee said.
The Korean government and Korea Eximbank will host the GTI and ECA meetings next year in Seoul.
“We expect the meetings to play a catalytic role in inducing the interest of private investors, export credit agencies and multilateral development banks in regional development projects,” the official said.
From 1992 to 2013, the Korean government contributed about $6 million to the GTI and the trust fund operated by the regional organization.