SEOUL, KOREA- On January 16, the state-run Korea Eximbank held a conference to unveil its key policy directions and financial support strategies to local exporters for the first half of 2013. Around 300 leading export companies were invited at the Korea federation of small and medium businesses in Seoul.
“The Bank set “growth” and “employment” as its basic values, and set aside a total of KRW 74 trillion for relevant areas to create employment. Substantial support will be provided not least for vulnerable areas such as shipbuilding, shipping and construction as a result of a difficult export environment,” said Yong-hwan Kim, Chairman of Korea Eximbank.
Korea Eximbank will provide KRW 74 trillion won (KRW 50 trillion in loans and KRW 24 trillion in guarantee), the highest all time in support for local export companies placed in a difficult situation, owing to the global economic slowdown and a strong won. KRW 45 trillion, 60% of the total, will be administered in the first half of this year.
The Bank came up with diverse plans to back the growth of the Korean SMEs: It will set up a “Support center for the business growth” aiming to help to build a win-win relationship between large companies and SMEs, and to boost the growth of small and mid-sized companies; KRW 22.5 trillion, 45% of the total loan, will be allocated for small and mid-sized companies.
Funding in support of winning overseas projects is also expected to increase. The Bank plans to provide KRW 21 trillion for the area of overseas plants such as petrochemistry and infrastructure, and KRW 5.5 trillion and 2.1 trillion for the green growth industry and resource development projects respectively.
For the areas of shipbuilding, shipping, and construction, KRW 5 trillion will be provided for the sake of pre-emptive provision of liquidity. For transactions in trade which find it difficult to garner support from commercial banks owing to the introduction of International Financial Reporting Standards (IFRS) and the rise of overseas risk, KRW 11.4 trillion will be supported through forfaiting and factoring. Companies deemed to be hidden Korean champions will be provided with KRW 4.8 trillion along with consulting services to boost their global competitiveness.