The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Kim Yong-hwan, “Korea Eximbank”) signed a ‘Memorandum of Understanding on Incubating SME Exporters’ with Small and Medium Business Administration (SMBA) at Korea Eximbank headquarters on August 29.

The MOU between the two institutions is aimed at promoting economic growth and job creation by strengthening the export capabilities of SMEs.

Accordingly, the two organizations will lend mutual support for Korea Eximbank’s ‘Comprehensive Support Plan for SMEs’* and SMBA’s ‘Global Highway Program.’**

* A program to provide customized support for SMEs at every stage of their development into exporters, from Export Beginners (companies with direct exports of USD 1 million or less) to Medium-Sized Exporters and ultimately to Hidden Champions.

** A program seeking to develop high-potential SME exporters into global mini-giants by diagnosing their globalization capacities, drawing up globalization roadmaps, and providing R&D/overseas marketing/financing-related support.

Korea Eximbank is first of all planning to offer interest rate discounts (by up to 0.5%p) and credit ceiling increases (from 70% to 100% of annual export value) to candidates of SMBA’s ‘Global Highway Program’.

For its part, SMBA will contribute to Korea Eximbank’s ‘Comprehensive Support Plan for SMEs’ through its non-financial services, for instance by jointly hosting foreign exchange risk management consulting programs and seminars.

Chairman Kim of Korea Eximbank, after signing the MOU, remarked, “I hope this MOU will help SMEs increase their presence in foreign markets by giving them greater access to Korea Eximbank’s experience and know-how.”

Likewise, Administrator Han Jung-wha of SMBA said, “We will continue to identify and exploit opportunities for collaboration with other SME-supporting agencies, the better to help SMEs overcome hurdles in their globalization journey.”