The Export-Import Bank of Korea concluded on March 12 an MOU on cooperation for shared growth with LG CNS, LG CNS partner SMEs, and the Korea Technology Finance Corporation.

The MOU seeks to support SMEs with technological leadership in new growth industries, as part of the Global PaSS Program initiated last December to promote shared growth among large corporations and SMEs.

As the first provision of support under the MOU, the Bank will be providing financing for ATEC, Kukjae Systems, and Biosmart Corporation, SMEs which are participating in the project won by LG CNS to install transportation card payment systems in Bogota, Columbia.

The benefits of SME support under this MOU are expected to be greater in this case as the project involves a high utilization ratio of Korean equipment, significant job creation, and a high proportion of supply obtained by the said SMEs.

Also as part of the shared growth program, the Bank will provide joint financing with Korea Technology Finance Cooperation to SMEs with leading technological capacities but limited collateral for loans. This support is expected to greatly assist SMEs which have not been able to participate in projects due to its low credit ratings.

The transportation card project in Bogota is significant in that Korea’s transportation information system, identical to that installed in the greater Seoul metropolitan area, will be exported to a megacity of ten million.

As such, this project is expected to be a touchstone spurring Korean IT exports in South America and Russia, where K-Pop and other cultural contents have already become popular.

In addition, as this support will be the first case of project financing applied to the IT industry, the Bank plans to take on the role of financial arranger and raise funds from international financial institutions, global commercial banks, and other creditors.

Chairman Yong-hwan Kim of Korea Eximbank commented after the signing of the agreement, “This MOU bears significance as it not only provides financial advisory and customized financial support for large corporations pursuing projects overseas, but also in that it provides comprehensive financing solution over the course of the entire project by support that includes financing promoting shared growth of partner SMEs.

Dae-hoon Kim, CEO of LG CNS, added, “We hope this MOU will not only help increase the number of contracts for overseas projects in IT solution and new growth areas, but also help partner SMEs develop and increase their competitiveness.

Since February, the Bank has concluded MOUs and provided financing for leading corporations in power (Korea Hydro & Nuclear Power Co., Ltd), plants (Samsung C&T, Doosan Heavy Industry), and machinery (Doosan Infracore) as part of its Global PaSS Program.

The Bank plans to expand shared growth programs to other sectors such as electronics and shipbuilding by encouraging participation of major industry leaders.