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Korea Eximbank to extend $103 bil. export financing amid growing trade uncertainty
Export-Import Bank of Korea (Korea Eximbank) Chairman and CEO Hwang Ki-yeon speaks during a press conference at the Korea Federation of Banks building in central Seoul, Wednesday. Yonhap
By Lee Kyung-min
Policy lender also plans to provide $75 bil. for SMEs
The Export-Import Bank of Korea (Korea Eximbank) Chairman and CEO Hwang Ki-yeon pledged on Wednesday to mobilize the bank’s full policy capacity to help small and mid-sized enterprises (SMEs) weather mounting global trade uncertainties, aided by a financial support package that will revitalize exports, bolster regional economies and secure Korea’s strategic industries.
Marking his 100th day in office, Hwang held a press conference at the Korea Federation of Banks building in central Seoul to outline policy goals to overcome what he described as a “trade crisis” and to foster a healthy industrial ecosystem where not only large conglomerates but SMEs are able to seek support.
Central to the drive is a strengthened policy package for exporters worth 150 trillion won ($103 billion), designed to help firms struggling with heightened geopolitical tensions, supply chain disruptions and slowing global demand, as well as artificial intelligence (AI) transformation.
“We will concentrate all of our policy capabilities on overcoming trade challenges, building a robust industrial ecosystem encompassing small- and mid-size exporters,” he said.
The updated version of the state-run lender’s existing crisis response program will help companies navigate short-term challenges by shouldering up to 80 percent of consulting fees for law and accounting firms.
The package will enhance support for businesses reshoring back to Korea, promote entry into new markets, and introduce assistance for companies to expand their presence in the global market in the sectors such as K-culture.
To boost regional growth, the lender plans to provide 110 trillion won in financing to SMEs and mid-sized firms, and raise the share of loans to companies outside the Seoul metropolitan area to over 35 percent.
In the first half of this year, the bank will also establish a 1.3 trillion won regional-led growth fund supporting export-oriented SMEs.
The lender will also inject 22 trillion won into a program supporting the AI transformation (AX) shift, while strengthening investment in venture funds to nurture promising AI firms.
About 50 trillion won will be spent over five years to secure core technologies and support facility investments in advanced industries.
The bank will strengthen support for Korean firms seeking greater presence in emerging markets. Currently, about 45 percent of the bank’s total lending is oriented toward projects related to developing countries.
“We are working closely with the Inter-American Development Bank (IDB) as part of our global network of multilateral development partners. We share common goals including supply chain stabilization, natural resources securing and logistics. Our plan is to help Korean businesses build a strong track record overseas, aided in part by our core drive, Economic Development Cooperation Fund (EDCF),” he said.
IDB is a major financial institution supporting development in Latin America and the Caribbean. EDCF is an official development assistance program providing long-term, low-interest loans to developing nations for infrastructure, health and industrial projects, administered by the bank.