Credit Supply by Korea Eximbank to be Reduced for Second Consecutive Year

CEO of the Export-Import Bank of Korea (Korea Eximbank) Lee Deok-hoon announced at his press conference on January 23 that his bank will carry out a total credit supply of 67 trillion won (US$57 billion) this year and it will be divided into 53 trillion won (US$45 billion) in lending and investment and 14 trillion won in guarantee (US$12 billion).

The total amount is 8 trillion won (US$6.8 billion) less than a year ago. Last year, the bank reduced its annual credit supply, by 6% from 80 trillion won (US$68 billion) to 75 trillion won (US$64 billion), for the first time since its inception. This year, the rate of decrease exceeds 10% due to the stagnation of industries such as shipbuilding, steel and construction and sluggish exports. Still, its credit supply to new growth industries is slated to increase.

Specifically, its credit supply to overseas construction, plant construction and shipbuilding is estimated at 27.8 trillion won (US$ 23.7 billion) this year while the amount reached 32.2 trillion won (US$ 27.5 billion) last year. Overseas construction used to account for 70% of the credit supply by the Export-Import Bank of Korea but the percentage for this year stands at 46%.

The bank has earmarked 6.5 trillion won (US$5.5 billion) for new growth industries though, up 44% from a year earlier. The idea is to make up for the slowdown of the conventional industries by means of the future-oriented sectors such as new service, new energy and ICT convergence.