The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-Hoon, "Korea Eximbank") announced on May 3 that the Bank signed a Recognition of the Framework Agreement ("Recognition") with the Central Bank of the Islamic Republic of Iran ("CBI") in the morning of May 2 (local time).

Korea Eximbank Chairman Lee Duk-Hoon met with CBI Governor Valiollah Seif and signed the Recognition at the Sa'd Abad Palace in Iran, in which the two parties agreed on facilitating the Framework Agreement between Korea Eximbank and CBI to increase Korean companies' participation in projects in Iran, which amounts to EUR 8 billion (equivalent to USD 9 billion).

The amount is part of a USD 15 billion financing package established between Korea Eximbank and Iranian entities to support projects in Iran, including USD 4.5 billion in project financing and USD 1.5 billion in Interbank Credit Facilities and other financing programs.

The Recognition was signed in the presence of President Park Geun-hye, who was on her state visit to Iran, and her counterpart President Hassan Rouhani of Iran.

Pursuant to the Recognition signed on the day, Korea Eximbank will soon enter into the Framework Agreement with six Iranian commercial banks, which will be the first agreement in the post-sanction era.

Through the Framework Agreement, Korea Eximbank is expected to expedite its financing process for the high priority projects in oil & gas, infrastructure, etc. that the Iranian government is pushing forward.

Consecutively after signing the Recognition, Chairman Lee also concluded a Memorandum of Understanding with Hassan Hashemi, Minister of the Ministry of Health and Medical Education ("MOHME") of Iran.

In the Memorandum of Understanding, MOHME assigns six hospital projects to Korean companies with Korea Eximbank's financing.

In the afternoon on the same day, Chairman Lee met with Sayyed Safdar Hosseini, Chairman of the Managing Board of the National Development Fund of Iran ("NDFI") and signed another Memorandum of Understanding, which includes co-financing for Iranian projects in which Korean companies take part and exchange of information on potential projects as part of mutual cooperation.

In addition, Korea Eximbank is in negotiation with two Iranian Banks, Parsian Bank and Bank Pasargad, to establish USD 200 million Interbank Credit Facilities.

Chairman Lee remarked, "Korea Eximbank is committed to cooperating with Iran to carry out its high priority projects in medical, infrastructure, water treatment, power generation, oil & gas, shipping and steel industries by facilitating Korean companies' participation through the Recognition of the Framework Agreement." He added, "We will make every effort to develop pipeline projects and increase Korean companies' participation in projects in Iran."