□ The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Yoon Hee-sung, “Korea Eximbank") announced it expanded its financial network for Korean companies to enter the Latin American markets, during the 2023 IDB Annual Meeting held in Panama from March 16 to 19.

* The IDB (Inter-American Development Bank) : An international organization established in 1959 for the purpose of promoting economic and social development and economic integration in Latin America. Korea joined the Group as a member in 2005 (48 member countries in total). 

□ Korea Eximbank Chairman Yoon Hee-sung and IDB Invest CEO James Scriven met at the Panama Convention Centre on March 16 and signed an interbank credit facility guarantee agreement. 

 * IDB Invest : Established as the private sector arm of the IDB Group, it is owned by 26 regional countries including Brazil, Mexico, and Colombia and 21 offshore countries including the United States, France, Japan, and Korea.

□ Under this agreement, Korea Eximbank will be able to provide Interbank Finance* to Korean product importing companies in Latin America and the Caribbean through 96 banks in 21 countries in the region, guaranteed by IDB Invest. 

 * Interbank Finance : Re-lending financial product offered by Korea Eximbank to foreign banks in the form of loans that can be utilized for their local clients which import Korean goods

□ Korea Eximbank Chairman Yoon said at the signing ceremony, “Amid deteriorating external conditions due to the global economic slowdown, Korean exporters will be able to enter the Latin American markets, without taking the risk of uncollectable export bills, although they have credit ratings relatively low.”

ㅇ He added, “We will provide full support for Korean companies' transactions in the region by signing this agreement with IDB Invest at a time when the nation‘s export drive is essential." 

□ Apart from the agreement, Chairman Yoon had a series of meetings with the head of the IDB and finance ministers attending the annual meeting in Panama. He shared ideas for financial cooperation with Latin America through Korea Eximbank’s Export Finance facilities and the Economic Development Cooperation Fund (EDCF)* 

* EDCF(Economic Development Cooperation Fund) : The Government of Korea established the economic aid fund for developing countries in 1987 to provide long-term, low-interest loans for the purpose of supporting industrial development and economic stability in developing countries and promoting their economic exchange with Korea.

□ On March 17, Chairman Yoon met with IDB President Ilan Goldfan at the Panama Convention Center. They discussed Korean companies’ strategies for entering the energy·climate change sectors in Latin America and financial cooperation to support the transition of the region to a decarbonized industrial structure.

ㅇ In addition, Chairman Yoon had meetings also with Panamanian Minister for Foreign Investment, Jose Alejandro Rojas, Salvadoran Finance Minister, Alejandro Zelaya, and Bolivian Minister of Development Planning Minister, Sergio Cusicanqui, respectively.

ㅇ At the meetings, they discussed comprehensive support measures for Korean companies, ranging from discovering new business opportunities in Latin America to providing financial assistance for their transactions in the region.

□ On the same day, Chairman Yoon met with CAF(Development Bank of Latin America) President Sergio Diaz-Granados at CAF’s Panama office and talked about ways to facilitate joint financing between the banks, through EDCF, KSP* etc. 

* Knowledge Sharing Program (KSP) : Based on its experience of transforming from an aid recipient to a donor, Korea developed a program, called KSP, to share Korea’s economic development experience with developing countries. 

□ Chairman Yoon remarked during the meeting, “As Korea Eximbank established financial cooperation network with IDB invest and expressed our willingness to actively support major national projects to the finance ministers of Latin American countries and high officials of the IDB Group, we expect that Korean companies’ financial competitiveness to enter the Latin American markets to be further strengthened.”

□ Meanwhile, although many Latin American countries are facing difficulties in securing funds due to uncertain external conditions, such as the prolonged European financial crisis and delayed economic recovery in developed countries, most of them have expressed their intent to expand infrastructure projects.