Eximbank, JBIC agree to cooperate on third-country infrastructure projects

Export-Import Bank of Korea (Eximbank) Chairman Yoon Hee-sung, second from left, shakes hands with Japan Bank for International Cooperation Governor Nobumitsu Hayashi during an MOU signing ceremony at the Japanese Ministry of Finance, Thursday. Korean Finance Minister Choo Kyung-ho, left, attends the ceremony with his Japanese counterpart Suzuki Shunichi. Courtesy of Eximbank

By Lee Yeon-woo

Logo of the Export-Import Bank of Korea (Eximbank) / Courtesy of Eximbank

The Export-Import Bank of Korea (Eximbank) has teamed up with the Japan Bank for International Cooperation (JBIC) to strengthen financial cooperation in infrastructure projects in third countries.

According to the state-owned lender, Friday, Eximbank Chairman Yoon Hee-sung and JBIC Governor Nobumitsu Hayashi signed a memorandum of understanding (MOU) at the Japanese Ministry of Finance the day before. Korean Finance Minister Choo Kyung-ho and his Japanese counterpart, Suzuki Shunichi, also attended the signing ceremony.

This business agreement is one of the accomplishments of a meeting by the finance ministers of the two countries, which was held for the first time since 2016.

Eximbank and JBIC will cooperate comprehensively on a variety of initiatives outlined in the business agreement. They include the development of infrastructure projects in third countries, with a particular emphasis on the Indo-Pacific region, and efforts to diversify and enhance the resilience of supply chains. Both parties are also committed to achieving carbon neutrality.

Additionally, the two banks will establish a mutual support system as part of their broader strategy to bolster financial cooperation, including joint activities in post-project management.

Eximbank and JBIC, which have served as representative export credit agencies in their respective countries, have long maintained cooperative relations to support firms in their domestic markets to venture overseas. This includes joint financing efforts worth $40 billion.

By signing the MOU, the two banks are expected to further strengthen their strategic partnership.

“At this juncture, when the world faces delays in economic recovery, instability in global supply chains, and the climate crisis, the resumption of economic exchanges between our two countries will serve as a foundation for a forward-looking relationship,” Yoon said during the signing ceremony.

“As a policy finance institution, Eximbank will align with our government's efforts. We will expand financial cooperation with JBIC and lead the way in promoting the overseas expansion of Korean and Japanese companies, thereby revitalizing economic cooperation,” Yoon added.