|SUBJECT||KRW 5 Trillion in Additional Support for Second Half of 2012|
On July 18, the Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Yong Hwan Kim, “ Korea Eximbank”) hosted the 2012 Second Half Core Strategy Seminar, attended by major Korean exporting firms, at Seoul Westin Chosun Hotel.
The seminar on main policy goals and financing strategies was participated by 400 executives and employees of over 200 exporting firms and export-related entities.
The presentation was comprised of five sessions in the morning and afternoon.
During the morning sessions, Korea Eximbank department chiefs introduced the Bank’s functions and support plans for the second half of the year, including response measures to the Eurozone’s sovereign debt crisis and Korea Eximbank’s Accompanied Growth Program.
The afternoon sessions were comprised of presentations on country-specific support policies and ECA financing.
A topic of great interest was the Bank’s KRW 5 trillion customized financial support package, prepared in response to negative economic forecasts to assist weak sectors.
The package includes an increase in trade financing.
Trade financing for the year will be increased by USD 3 trillion to assist exporting SMEs facing liquidity shortages because they cannot cash out export bonds.
In addition, comprehensive export financing* for SMEs will be expanded to total KRW 500 billion and have a higher loan ceiling.
* Financing provided based on past export performance for export transactions, regardless of the type of export.
The package also includes an additional injection of KRW 1 trillion of support for shipbuilding and offshore plant sectors as they are particularly impacted by contractions in new orders and financing from European banks.
Low shipping rates have also made it difficult for SMEs in the sector. As such, the Bank will supply liquidity by providing purchase funds for used ships.
KRW 500 billion will additionally be provided to support overseas expansion of construction SMEs with superior technology and business potential.
Chairman Yong Hwan Kim of Korea Eximbank commented, “The seminar was held to increase corporate awareness of the Bank’s financial support plans for the second half of the year and facilitate access to our products. By providing additional financing support of KRW 5 trillion in the second half of this year, we hope to truly assist exporting SMEs overcome the current crisis.”