Korea Eximbank, Korea Trade Insurance Corporation Ink MOU with Bank Gospodarstwa Krajowego

In line with President Yoon Suk-yeol’s visit to Poland, the Export-Import Bank of Korea (Korea Eximbank) and Korea Trade Insurance Corporation are set to sign a financial agreement with Bank Gospodarstwa Krajowego (BGK), the Polish state-owned bank. The financial institutions of both countries plan to jointly support export funds to assist Korean companies’ entry into the local market.

According to financial sources on July 11, Korea Eximbank, Korea Trade Insurance Corporation, and BGK plan to conclude a memorandum of understanding (MOU) for financial cooperation between the three parties as early as this week. Yoon Hee-sung, the president of Korea Eximbank, and Lee In-ho, the president of the Korea Trade Insurance Corporation, who are both accompanying President Yoon as part of the economic delegation, are expected to attend the signing ceremony in person.

BGK, the only state-owned bank in Poland, has been providing funds for major infrastructure projects such as energy and road construction within the country.

During the summit meeting between President Yoon and Polish President Andrzej Duda, collaboration methods in the fields of infrastructure, nuclear power, and defense are expected to be discussed. Both countries’ institutions are preparing financial support measures that include providing a wide range of loans and guarantees/insurance to domestic export companies participating in the projects.

Both institutions are considering large-scale infrastructure construction projects, especially those involving plant operations within Poland. This comes as Korean construction companies like Hyundai Engineering have achieved impressive results such as winning the contract for the largest petrochemical plant project in Poland. Further support is needed to attract additional projects.

Korean public financial institutions are making concerted efforts to support expansion into Poland, an emerging new export market. In fact, Korea Eximbank has recently embarked on operational work to increase its credit limit with the authorities. The bank’s loan limit is determined by the legal capital limit and aims to expand it from the current 15 trillion won to increase its lending capacity. This revision is due to Poland’s request for additional financial support to import Korea’s defense materials.

The agreement between the institutions of the two countries may also pave the way for Korean companies’ entry into Ukraine’s reconstruction projects. During this visit, President Yoon plans to discuss cooperative measures for Poland and Ukraine's reconstruction. Previously, Choi Sang-mok, presidential economic advisor, stated that “Poland is the hub of Ukraine’s reconstruction project,” adding, “Many countries are promoting entry into Ukraine in cooperation with Poland.”