Export Financing
The Export-Import Bank of Korea (Korea Eximbank) held a briefing on its core strategies during the first half of 2014 at the CCMM Building at Yeouido, Seoul on January 23.
Korea Eximbank is planning to provide 76 trillion won (US$70.3 billion) in financial assistance, 52 trillion won (US$48.1 billion) of loans and 24 trillion won (US$22.2 billion) of financial guarantees, to local exporters this year. The amount is the highest ever offered by the bank. The plan is due to the fact that local companies have recently had difficulties in exports owing to the tapering of quantitative easing (QE) and the weak yen.
To be specific, it will give 43 trillion won (US$39.8 billion) to the nation’s strategic industries, including the overseas construction industry, marine and shipbuilding industries, and the resource development industry. In particular, it plans to offer a one-stop financial assistance system where information about overseas projects, financial counseling, and financing-linked support arrangements are provided. It will be done by utilizing the Strategic Financial Support Center for Overseas Construction and Plants, which it opened in its main branch in January 13. Fully 2.5 trillion won (US$2.3 billion) will be provided to future creative-type industries excellent in job creation and growth potential, including cultural content, knowledge services, health care, and climate change.
An increase in financial support for small and medium-sized enterprises (SMEs) and medium-sized companies is also noticeable. The export-import bank allocated 25.5 trillion won (US$23.6 billion) in customized financial assistance by growth stage from small startup exporters, mid-sized businesses to global hidden champions, in order to carry out a newly-specified task in the revised Export-Import Bank of Korea Act. The task involves helping SMEs and mid-sized companies with exports and imports as well as overseas advances.