The Export-Import Bank of Korea (www.koreaexim.go.kr Chairman Lee Duk-hoon, “Korea Eximbank”) announced on April 25 that it concluded an MOU on ‘Supporting SME and Medium-Large Exporters’ with Korea Institute for the Advancement of Technology (KIAT) at the bank’s headquarters in Yeouido, Seoul, on the afternoon of April 24.

The aim of the MOU is to help SMEs and medium-large businesses expand overseas and creation new jobs.

Pursuant to the MOU, the signatories will offer mutual support to enhance the effectiveness of their SME and medium-large company development programs, namely Korea Eximbank’s Korean Hidden Champion Initiative* and KIAT’s Specialized Global Company Development Program**.

* A program aimed at incubating upper medium-sized companies with global market dominance, or Korean Hidden Champions, through targeted provision of customized financial and non-financial services. Korean Hidden Champions are companies that export more than USD 300 million annually and whose global market shares rank within the top five in their respective sectors; or whose sales revenues exceed KRW 1trillion, of which more than 50% consists of exports.

** A program to incubate more than 400 medium-large global players (‘specialized global companies’) with more than USD 100 million in direct exports.

More specifically, Korea Eximbank will actively take part in the candidate selection process of KIAT’s Specialized Global Company Development Program and will offer candidates financial services at preferential terms, such as interest rate discounts and credit ceiling increases.

KIAT, for its part, will actively provide non-financial services such as foreign exchange risk management courses for Korean Hidden Champion candidates.

Korea Eximbank Chairman Lee Duk-hoon expressed his hope that the MOU “will amplify the impact of our support for SMEs and medium-large companies by combining the experience and know-how of the two institutions in a synergetic way.” He added that the bank planned to “provide high-quality financing to export-oriented SMEs and medium-large firms through our newly introduced ‘Export Performance-Based Long-Term Working Capital Loan’ and ‘Shared Growth Guarantee’ programs.”

KIAT President Jung Jae-hun likewise remarked, “We will continue to explore various ways to cooperate with other agencies of similar mandates in our effort to identify and nurture high-potential SMEs and medium-large companies into specialized global players.”