The Export-Import Bank of Korea (Korea Eximbank) signed an MOU with Korea Hydro & Nuclear Power Co. Ltd (KHNP) at the Seoul Intercontinental Hotel on February 14 in order to facilitate overseas exports by Korean SMEs in hydro and nuclear power industries.

The MOU is an extension of the Global PaSS Program*, a win-win/sustainable growth program launched by the Bank in December 2011 to promote Korean SME exports of nuclear and hydro power parts.

* The PaSS Program is comprised of Pa) Partnership in Overseas Business to assist SMEs that have expanded overseas with large corporations, S) Sustainable Growth with SMEs to support new growth SMEs with technological leadership and S) Seed, a community outreach program for disadvantaged groups.

According to Korea Eximbank, the MOU will increase access to funding for SMEs that have highly advanced technologies but have difficulty obtaining funding due to their small company size or low credit, or those that have difficulty in obtaining overseas market share due to insufficient track records.

Korea Eximbank will collaborate with KHNP to simplify SME review processes and provide funds at favorable rates.

At the same time, the two institutions will assist SMEs throughout the exporting process, from development and manufacturing to marketing, by strengthening business and technological capacities of exporting SMEs in nuclear and hydro power, and helping them expand into overseas markets.

Dr. Yong Hwan Kim, Chairman and President of Korea Eximbank, commented after the signing ceremony, “While large corporations receive customized financial support and investment banking services for overseas projects, SMEs are generally marginalized. Through this MOU, we will forge a close cooperative relationship with KHNP to assist SMEs in nuclear and hydro power sectors achieve stable and long-term growth.”

President Jong Shin Kim of KHNP stated, “Nuclear and hydro power industries greatly impact related industries and are key drivers of national economic growth. Plant exports, in particular, lead to joint market expansion with SMEs and effectively stimulate economic growth. We will make efforts to increase exports of hydroelectric power plants and ensure that the UAE nuclear plant export serves as a bridgehead for further exports of nuclear plants.”

Meanwhile, with the signing of the MOU, the two institutions will establish regular consultative group meetings to discuss measures for win-win growth with SMEs.