The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Kim Yong-hwan, “Korea Eximbank”) announced on January 23 that it held a ‘Briefing on Korea Eximbank’s Core Strategy for the First Half of 2014’, inviting major Korean exporters, at CCMM Building in Yeouido.
Over 400 delegates from some 300 exporters attended the briefing, where the heads of key departments at Korea Eximbank articulated the agency's policy priorities and financing strategies for the first half of 2014.
Of particular interest to the audience were discussions on how a major revision to The Export-Import Bank of Korea Act (the “Korea Eximbank Act”) that passed the National Assembly in December 2013 would enable Korea Eximbank to support exporters with much more creative and flexible financial services.
The briefing was conducted in two sessions.
The first session featured presentations on Korea Eximbank's financing strategy and its plans to support SMEs and the nation's strategic industries such as creative industries and maritime shipping.
The second session covered Korea Eximbank's project financing strategy to promote Korean participation in overseas projects and introduced the recently renovated website of Korea Eximbank Overseas Economic Research Institute (KERI).
Director General of the International Economic Affairs Bureau of the Ministry of Strategy and Finance Yoon Tae-yong, also present at the briefing, announced the Korean government’s “Policy on the Provision of Officially Supported Credits for External Transactions” aimed at strengthening the competitiveness of Korean companies in overseas markets.
Backed by last year's amendment to the Korea Eximbank Act, finalization of the Government Plan to Promote Korean Participation in Overseas Construction and Plant Deals, and moves to rearrange the roles of government-mandated financial institutions, Korea Eximbank is assuming leadership in the provision of government policy-based financing services to overseas projects.
Korea Eximbank plans to extend a record KRW 76 trillion in credit (KRW 52 trillion in loans and KRW 24 trillion in guarantees) to Korean exporters this year, in an effort to counter headwinds in the global environment such as the Fed’s QE taper and a weakening yen.
Above all, the bank plans to provide a total of KRW 43 trillion in credit for the nation's strategic industries such as overseas infrastructure and industrial plants, maritime shipping, and natural resources.
When it comes to supporting companies seeking participation in overseas projects, much use will be made of the Korea Consulting Center for Overseas Infra&Plant Projects, which opened its doors at Korea Eximbank headquarters on January 13, to provide such services as market intelligence, financial arrangement, and financial advice in a one-stop package.
In addition, KRW 2.5 trillion has been set aside to support creative industries such as cultural contents, knowledge services, healthcare, and climate change mitigation, all of which have a high potential for job creation and growth.
Increased support for SMEs and medium-large businesses is another salient feature of Korea Eximbank’s plan for this year.
The bank allotted KRW 25.5 trillion for its SME support program that is customized to the stages of growth of individual SMEs, aiding their transition from novice exporters to mid-level exporters, and finally to hidden champions.
The bank plans to provide a total of KRW 2.4 trillion, about twice last year's amount, through the Shared Growth Program in 2014, in order to support SME exporters entering overseas markets in partnership with large corporations.
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