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Press Release

Korea Eximbank Signs MOU with EDC to Build Key Mineral Supply Chains and to Foster Green Industries

Date 2023.04.30 View 9844

□ The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Yoon Hee-sung, “Korea Eximbank") announced it signed an ‘MOU to Establish Key Mineral Supply Chain and to Support Green Industry’ with Export Development Canada (President and CEO Mairead Lavery, ”EDC“)*, on April 30. 

  * EDC : Founded in 1944, it is an Export Credit Agency (ECA) of Canada fully owned by the Canadian federal government, which supports Canadian companies’ exports and overseas businesses.

 

ㅇ Korea Eximbank Chairman Yoon Hee-sung and EDC President and CEO Mairead Lavery met at the headquarters of EDC in Ottawa, Canada on April 28 to sign the MOU for △ securing a supply chain of rare minerals used in semiconductors and electric vehicles and △ strengthening cooperation in clean hydrogen, renewable energy and carbon reduction projects. 

 

 

□ After Korea and Canada had a summit meeting in September last year, the two countries elevated their diplomatic relations to a ‘comprehensive strategic partnership’ and pledged to establish a cooperative system in the mineral resource sector to ensure stable supply chains. They also promised to expand cooperation in the decarbonization field.

 

ㅇ The purpose of this MOU between Korea Eximbank and EDC, the leading ECAs of the two countries is to proactively prepare for the potential increase in financial demands that may arise in the process of expanding cooperation between the two countries.

 

 ㅇ Since the U.S. Inflation Reduction Act (IRA) came into effect, there has been a growing need to utilize Canadian rare minerals in the electric vehicle battery and materials industries, leading to a gradual rise in Korean companies expanding their presence in Canada.

 ㅇ Canada has also shown interest in hydrogen projects and Small Modular Reactor (SMR) technology* developed by Korea.

   * The Alberta government of Canada signed an MOU with the Korea Atomic Energy Research Institute (KAERI) to utilize SMRs developed by KAERI, including the 'SMART', with the aim of carbon reduction in Alberta ('23.4.19)

 

 ㅇ These are the reasons why the MOU is expected to serve as a catalyst for economic cooperation between Korea and Canada. 

 

□ After signing the MOU, Korea Eximbank Chairman Yoon remarked, “Canada is not only a country with key minerals for batteries, but also a country with abundant hydrogen energy resources. I believe Canada can expect significant synergies from cooperating with Korea, which has top-tier technological capabilities in the electric and hydrogen-powered vehicle sectors.“ He went on to say, “Moving forward, Korea Eximbank and EDC will cooperate to lead the economic cooperation between our two countries.”

 

 

□ EDC President and CEO Mairead Lavery said at the signing ceremony, “The global energy transition depends on a reliable supply chain of critical minerals and energy sources coupled with the development of the clean technologies that will help our industries and economies to decarbonize. This agreement between EDC and KEXIM Bank in South Korea, a strategic market for Canadian companies in the Indo-Pacific region, is focused on leveraging our respective resources and expertise to drive greater global cooperation and progress in the transition to a low-carbon future."

 

 

□ Meanwhile, on the same day, Korea Eximbank Chairman Yoon met with FinDev Canada* CEO Lori Kerr to discuss the roles and functions of development finance institutions and sought practical cooperation opportunities between the two institutions.

 * FinDev Canada is Canada’s development finance institution(FDI), supporting the private sector in developing countries to promote sustainable development integrating economic and social priorities. It is also a wholly owned subsidiary of EDC.