On Dec. 6, Korea Eximbank (www.koreaexim.go.kr, Chairman Yong Hwan Kim) and Korea International Finance Association* held a policy seminar on the role of international finance and importance of winning large-scale overseas project contracts in overcoming the global fiscal and financial crisis and export slowdown. The seminar was attended by 200 participants from 29 customer companies, academic institutions, and the Ministry of Strategy and Finance and was held at headquarters.
* Korea International Finance Association (Chairman Jeong Guen Oh, Professor at Korea University): Established in 2009 to foster networks among those in academia, government, and business in response to changing corporate and financial environments.
During the seminar, discussions were held on various topics including the impact of the growing global fiscal and financial crisis on Korea’s exports, the importance of winning large-scale project contracts and early financing to overcome the current situation, and the role of policy financing in alleviating current conditions.
Chairman Jeong Guen Oh gave the first presentation. Oh stated during his presentation, “According to our analysis of Korea’s export model, export growth rates are anticipated to be below 20% after 2012 and continue to decline due to world economic downturns caused by the global financial crisis. We need to actively address this problem by winning large-scale overseas plant contracts.”
Next, Professor Jong Eun Lee from Sejong University stressed, “Because the plant industry is relatively less affected by the economy, more influential to other sectors, and not as limited by import regulations, creation of overseas demand by winning overseas plant contracts is especially important during times of economic downturns.”
The last presenter, Mr. Chul-han Jeong, a representative from the Structured Finance Sector of BNP Paribas, presented the view that Korea’s policy financial institutions such as Korea Eximbank need to play a greater role as other ECAs are actively making great efforts in response to contractions in the general project finance market.”
Director Tae Yong Lee of the International Economic Affairs Bureau, Ministry of Strategy and Finance, participated as a panelist and explained, “The Korean government is also closely analyzing recent trends in the global economy and striving to address them. In addition, the government is working to develop policies to support efforts by Korean companies to win large-scale overseas projects.”
President and Chairman Yong Hwan Kim in his opening remark pinpointed, “Korea Eximbank provided support for 60% of overseas plant projects contracted by Korea companies during the 2010 global financial crisis and played a major role in winning large-scale projects through establishment of the Investment Banking Office during the second half of 2011.”
According to a representative of Korea Eximbank, the seminar was evaluated to have successfully raised awareness among those representing the private sector, government, and academia about the importance of and need to support large-scale overseas project contracts. Based on such shared understanding, the Bank affirmed it will actively support efforts by businesses to secure large-scale overseas contracts.
