For the first time since the onset of the COVID-19 pandemic, the Export-Import Bank of Korea (Korea Eximbank) is preparing to establish its first overseas office in Poland, marking its initial foray into the country. The recent amendment to the Export-Import Bank of Korea Act has created the opportunity for capital enhancement, enabling the bank to bolster its financial capacity. As a result, it is anticipated that Poland’s defense exports will receive increased support and momentum from Korea Eximbank.
The amendment to the Export-Import Bank of Korea Act includes provisions to increase the statutory capital limit of the bank from the current 15 trillion won (US$11.17 billion) to 25 trillion won.
However, Korea Eximbank emphasized that its role in financing is expanding not only in the defense sector but also in supporting domestic companies’ overseas expansion efforts. A Korea Eximbank official explained, “This extends beyond defense to provide financial support for companies venturing into foreign markets, including sectors such as secondary batteries.”
Kim Joo-hyun, the chairman of the Financial Services Commission (FSC), has been visiting Poland since March 24 (local time), marking the first such visit by a Chairman of the FSC. On March 25 (local time), he met with the head of the Polish Financial Supervision Authority. During the meeting, Chairman Kim expressed the willingness of the South Korean government and the financial sector to provide financial support for large-scale cooperation projects. As part of this initiative, he plans to request cooperation from the Polish financial authorities regarding the application for local permits by domestic banks, as the local expansion of domestic banks is important.
The increased interest of the domestic financial sector in Poland can be attributed to the significant increase in investment, particularly in electric vehicle batteries, since the 2010s. As of last year, 370 domestic South Korean companies had entered Poland with a cumulative investment of US$6 billion.
Following last year’s summit meeting, it is expected that the demand for financial support will significantly increase, particularly in sectors such as defense, nuclear power generation, infrastructure exports, and cooperation in reconstruction projects in Ukraine. This has led to a surge in interest among domestic financial institutions, with banks taking the lead, in Poland. In fact, the Industrial Bank of Korea (IBK), Woori Bank, and Shinhan Bank have already established offices in Poland. Among them, IBK is planning to convert its presence into a local subsidiary, while Woori Bank aims to transition into a branch. Additionally, Hana Bank is also pushing forward with plans to establish a branch in Poland.