□ On April 28, Korea Eximbank (www.koreaexim.go.kr, Chairman Yong Hwan Kim) signed an MOU with 8 domestic commercial banks including KB Kookmin Bank to strengthen partnership in financing overseas projects at the Banker’s Club of the Korea Federation of Banks in Myungdong.

* 8 Participating Banks: KB, Woori, Hana, IBK, KEB, SC First, Citi

□ Due to the high risk and long loan tenure of overseas large-scale projects, commercial banks had found it difficult to participate in joint financing of such projects with Korea Eximbank.

○ This most recent MOU integrates Korea Eximbank’s expertise in financing overseas projects with that of commercial banks in corporate finance and PF for domestic projects to create a synergy for greater overseas market expansion by Korean companies.

□ Chairman Yong Hwan Kim stated, “Under fierce competition with foreign IBs and ECAs for large-scale overseas project orders, cooperation between Korea Eximbank and domestic commercial banks is more necessary than ever to promote overseas expansion of Korean companies which have global technology competiveness.”

○ He added, “The main goal of this agreement is to strengthen mutual cooperation for support of overseas projects by Korean companies by sharing our experience and know-how in financing overseas projects.”

□ KB CEO Byung-duk Min said, “Once an appropriate level of profits is secured and reasonable risk management measures are prepared, participation in overseas projects through project financing and joint financing of Korea Eximbank will likely increase. Commercial banks also need to expand business scope by supporting overseas projects and strengthening their global financial competitiveness.”

□ Korea Eximbank plans to share information and exchange human resources through the “Project Management Team,” in order to achieve the two goals specified under the MOU: development of advanced financing methods and joint-support of overseas projects.

○ In addition to these efforts, Korea Eximbank is currently preparing various measures such as application of differential loan terms and debt guarantees, in order to increase participation of domestic commercial banks in medium- to long-term loans.

* Project Management Team: a task-force established to provide various services such as overseas project development, financial advisory service, and arrangements needed for overseas market expansion by Korean companies.