Eximbank bolsters network in Latin America

Export-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu, left, poses with Maria Lombana, right, Colombia's Minister of Commerce, Industry, and Tourism, after Eximbank and Colombia's Banco de Occidente signed a re-lending deal at the Eximbank's office in Bogota, Colombia, March 22. Courtesy of Eximbank

Eximbank signs re-lending deal with Colombia's Banco de Occidente

By Yoon Ja-young

Export-Import Bank of Korea (Eximbank) is strengthening its financial network in Latin America to help Korean businesses get a head start winning orders overseas before the post-pandemic era starts.

Eximbank CEO Bang Moon-kyu held separate meetings with the presidents of Colombia and the Dominican Republic as well as the chief of the Central American Bank for Economic Integration (CABEI), discussing comprehensive measures for cooperation to induce more Korean businesses to advance into Latin America's infrastructure and energy sectors.

Bang had meeting with Colombian President Ivan Duque at his office in Bogota, March 22, where they discussed how Korea's Economic Development Cooperation Fund (EDCF) should support the Latin American country deal with climate change, transition to digital, and promote the use of electric vehicles. The EDCF was established in 1987 and Eximbank is in charge of operating and managing the fund. The Korean bank aims to support industry development and economic stability in developing countries as well as promoting their economic exchanges with Korea, providing long-term, low-interest loans. Eximbank also held an opening ceremony of its Bogota office on the same day and signed a $100 million re-lending deal as well as an MOU with Banco de Occidente.

Bang also met Dominican Republic President Luis Abinader and CABEI chief Dante Mossi in Santo Domingo on March 24. They discussed Korean business participation and Korea's financial support for the Dominican Republic's LNG power plant and transportation infrastructure projects, such as building subways and railways. Korea is a member of CABEI, a multilateral development bank established in 1960 to support both public and private investments for balanced development and economic integration in Central America. Eximbank also inked a $100 million MOU with BANDEX, the Dominican Republic's export credit agency, to support Korean businesses operating in diverse projects including LNG terminals, renewable energy, and ICT.

While countries like Spain, the U.S., and China used to win major infrastructure projects in Latin America, funding such projects has become difficult due to deteriorating fiscal conditions of the governments following the COVID-19 pandemic. Eximbank expects the bolstering of financial networks with CABEI and BANDEX will provide Korean businesses with better financing when they engage in public-private partnerships or infrastructure projects.

“The year 2022 marks the 60th anniversary since Korea established diplomatic ties with Colombia and the Dominican Republic,” Bang said.

“The Latin American market will provide opportunities for Korean companies to diversify from Middle East and Asia. Eximbank will actively support them,” he added.