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Overseas Investment Credit

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Overseas Investment Credit is provided to Korean companies that invest abroad in the form of capital subscription, acpqisition of stocks, or long-term credit.

This credit is extended when prospective projects are considered as contributing to the sound development of the national economy and promoting economic cooperation with foreign countries concerned.

Terms & Conditions

Terms & Conditions
Borrower Korean companies planning to invest overseas with more than 3 years of experience in the field
Type of Loans
  • Credit to Korean companies for equity participation in foreign companies
  • Credit to Korean companies for re-lending to foreign companies, in which the Korean companies have equity share, as long-term funds for ventures operating outside Korea
Currency A foreign currency or Korean Won
Coverage Up to 80% (90% for small & medium size companies) of the funds required for investment projects
Interest Rate
  • Korean Won
    Fixed Rate: Base Rate + Margin.
    Floating Rate: Base Rate + Margin
  • Foreign currency
    Fixed Rate: Swap Rate + Margin
    Floating Rate: Libor(or Swap rate) + Margin
Repayment Term Maximum 30-year repayment period including 3-year grace period
Repayment of
Principal
Basically annual equal installments (Lump-sum on the maturity date possible for loans with repayment term of less than 3 years)
Security
  • Bank guarantee, pledge, or mortgage on the borrower's local assets
  • Loan on credit possible to creditworthy borrowers

* Businesses ineligible for Overseas Investment Credit

  • Investment by individuals who do not engage in business
  • Investment in foreign stocks and bonds for speculative purposes

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