Korea Exim EDCF Global Network
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About Us Financial Service Financial Product EDCF/IKCF Sustainability Customer Service
Korea Exim EDCF Global Network
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About Us

Financial Service

Financial Product

EDCF/IKCF

Sustainability

Customer Service

Success partner for your global takeoff,
The Global Network of Korea Eximbank.

Global Asia Europe America Africa
Representative Office(24) Overseas Subsidiaries(5)

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Export Credit and Environmental Review

Korea Eximbank and the Environment Environmental and Social Due Diligence Environmental and Social Checklists OECD Common Approaches Environmental Information

Types of Transactions subject to Environmental and Social Due Diligence

The financing types presented below, with repayment terms of two years or longer, are subject to Environmental and social (hereinafter referred to E&S) due diligence

Export Financing for Foreign Entities
(above SDR+ 10million)

  • Direct Loans
  • Interbank Export loans
  • Project Finance (including Financial Guarantees in each case above)

Others

  • Financing related to environmentally sensitive areas
* SDR : Special Drawing Rights created by the IMF SDR

E&S Due Diligence Procedures

Client : E&S Screening Form → E&S Impact Assessment E&S Management Plan → Consent to E&S info disclosure → E&S Reporting → E&S Monitoring

Client : E&S Screening Form → Screening & Categorization → Category A → E&S Review → E&S info Disclosure → Credit Approval & Financial Contract → E&S Monitoring

Client : E&S Screening Form → Screening & Categorization → Category B → E&S Review → E&S info Disclosure → Credit Approval & Financial Contract → E&S Monitoring

Client : E&S Screening Form → Screening & Categorization → Category C → Credit Approval & Financial Contract → E&S Monitoring

Client : E&S Screening Form → E&S Impact Assessment E&S Management Plan → E&S Review → E&S info Disclosure → Credit Approval & Financial Contract → E&S Monitoring

Client : E&S Screening Form → E&S Impact Assessment E&S Management Plan → Consent to E&S info disclosure → E&S info Disclosure → Credit Approval & Financial Contract → E&S Monitoring

Kexim : Screening & Categorization → Category A → E&S Review → E&S info Disclosure → Credit Approval & Financial Contract → E&S Monitoring

Kexim : Screening & Categorization → Category B → E&S Review → E&S info Disclosure → Credit Approval & Financial Contract → E&S Monitoring

Kexim : Screening & Categorization → Category C → Credit Approval & Financial Contract → E&S Monitoring

1. Screening & Categorization

Once a client submits an E&S Screening Form, the bank estimates the levels of E&S risks involved in the project to be supported, and categorizes the project according to the extent and level of such risks.

Category A

  • Projects with potential significant adverse environmental and / or social impacts which may affect an area broader than the sites.
  • E&S Impact Assessment Report to be provided. Independent Party to review ESIA.
  • Project Information Disclosure at least 30 days before a final commitment to grant official support.

Category B

  • Projects with potential environmental and / or social impacts which are less adverse than those of  Category A Projects, and for which mitigation measures are more readily available.
  • Appropriate Information related to environmental and social impacts to be provided and reviewed.
  • Project Information Disclosure at least 30 days before a final commitment to grant official support.

Category C

  • Projects with minimal or no potentially adverse environmental and / or social impacts.
  • No environmental and social impacts Review required.
  • No Information Disclosure required.

Category FI

  • Indirect loan Projects with similar level of environmental and / or social impact of Category A or B.
  • Financial intermediary’s environmental and social policies and review procedures.
  • Project Information Disclosure and the name of the financial intermediary by the year-end of the credit approval.

2. Environmental and Social Impact Assessment (Hereinafter referred to as ESIA)

Scope of ESIA
The bank offers clients comprehensive guidance to determine the scope of ESIA, such as air quality, water quality, soil contamination, waste, biodiversity and socioeconomic impacts, and to establish an E&S Management Plan (hereinafter referred to as ESMP).
Applicable E&S Standards
More stringent standards among host country regulations and internationally recognized standards are applied.
International guidelines : IFC Performance Standards, EHS guidelines, etc.
Engagement with E&S Consultant
An independent E&S consultant to perform the ESIA is appointed by clients with assistance from the bank.

3. E&S Impact and Plan Review

In order to ensure that the project is in compliance with applicable E&S standards, the bank reviews ESIA reports and ESMPs submitted by clients and offer suggestions for improvement, where applicable.

4. E&S Information Disclosure

The bank discloses E&S information pertaining to projects on its website before and after a final commitment to grant official support.

5. Commitment to Grant Official Support

E&S requirements to fulfill are reflected in agreements between the bank and clients.

6. E&S Monitoring

Period of E&S Monitoring
Throughout the loan or guarantee period.
Method of E&S Monitoring
The bank reviews monitoring reports prepared by independent consultants to ensure compliance with the E&S requirements.
Results of E&S Monitoring
The bank imposes further remedial actions / restrictions against violations of environmental and social requirements.