The determination of LIBOR will be permanently ceased

The London Interbank Offered Rate (“LIBOR”) has been widely used in the calculation of interest and other payments under domestic loans of foreign currency, derivatives and other financial products in the global financial market. LIBOR is determined based on submissions provided by a panel of banks, and the loan agreement you entered into with The Export-Import Bank of Korea (‘KEXIM”) utilizes LIBOR to determine floating interest rate applicable to your loan.

However, as it was discovered that not only LIBOR was manipulated by certain panel banks in 2012, but also lack of active interbank market was being found, major authorities are preparing for potential cessation of the determination of LIBOR as The Financial Conduct Authority of UK (“FCA”), which oversees LIBOR setting activities, announced in July of 2017 that it will no longer require banks to submit the rates required to calculate LIBOR after 2022.