Following the Cheonan warship incident on May 24, 2010, the Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Yong Hwan Kim, “ Korea Eximbank”), which operates the Inter-Korean Cooperation Fund (IKCF), extended loan maturities by a year for IKCF special loans provided to South Korean firms trading with or working with companies in North Korea. The Bank has decided to re-extend maturity periods by another year for these special loans.

The decision was based on government (the Ministry of Unification) policies to assist companies involved in inter-Korean trade as the relationship between the two Koreas continue to be strained after the Cheonan incident.

After the government suspended trade activities following the May 24, 2010 incident, Korea Eximbank provided financing (first provision of special loan) to 169 firms trading with the North and participating in economic cooperation. In 2012, the Bank provided financing (second provision of special loan) to 99 firms involved in inter-Korean trade.

Of the special loans first provided in 2010, 153 loans reaching maturity beginning on the 31st of this month will be eligible for maturity period extension while the remainder will be excluded due to business closure or bad credit.