Exim takes lead in job creation

By Kim Jae-won

Staff reporter

The Export-Import Bank of Korea (Korea Eximbank) has stepped up efforts to expand the scope of its role as a policy lender by actively participating in the government-initiated job creation campaign to bolster the Korean economy.

Now, the state-run lender is offering incentives for companies hiring more employees by reducing annual interest for loans up to 0.7 percentage point for those adding 3 percent more workforce a year to their payrolls.

It has also enhanced support for IT industry and culture-related businesses, which create many jobs for the youths. The lender has given additional interest of up to 0.2 percentage points for them. It expects to create 3,000 more jobs with these projects.

Kim Dong-soo, chairman and CEO of the lender leads the projects. "A top priority for 2010 is increasing employment opportunities in Korea as the unemployment rate has yet to improve despite recent signs of national economic recovery," Kim said at the lender's 2009 annual report.

"As such, the bank has set "Developing Growth Engines for Job Creation" as a mission for 2010. To realize our mission, we have introduced a wide range of financial incentives for companies which increase job opportunities."

The former vice finance minister emphasized the importance of information-based industries.

"We will also increase financial supports for knowledge and culture industries as these industries have high potential to diversify economic growth sources and create more jobs."

The Eximbank provides loans for local exporters and supports Korean enterprises doing their business overseas. Since its establishment in 1976, the bank has actively supported the nation's export-led economy and facilitated economic cooperation with foreign countries.

The lender's primary services include export loans and trade finance. The bank also provides overseas investment credit, import credit and information services related to business opportunities abroad.

Furthermore, the lender is responsible for the operation of two government funds ― the Economic Development Cooperation Fund (EDCF), a Korean official development assistance program, and the Inter-Korean Cooperation Fund (IKCF), an economic cooperation program with North Korea.

The lender set a milestone in the history of the EDCF last year with the largest amount of loan commitment and disbursements. The EDCF loan commitment totaled $1.1 billion in 2009, the highest amount since its establishment in 1987 exceeding $1 billion for the first time. The EDCF loan disbursements also increased drastically last year surpassing 300 billion won.