SEOUL, KOREA - The state-run Korea EXIM Bank announced at the press conference that it would spend 74 trillion won (USD 68 billion), the highest amount of all time, on loans and guarantees in order to spur “growth” and “job creation” through export. The total amount will include 50 trillion won in loans and 24 trillion won in guarantees.
“The Bank will expand its spending to support exporters in a bid to win overseas projects which have a great ripple effect on the economy. 21 trillion won will be provided for the areas of overseas plants including petrochemistry and power generation. 5.5 trillion won and 2.1 trillion won will be allocated for the green growth industry and resource development respectively in a bid to secure future growth engines,” said Kim Yong-hwan, president of the Bank.
In order to meet the incoming government’s main policies, the Bank expanded its financial supply for SMEs, and also completed organizational and institutional restructuring. Centering on the “Business growth support center”, fully 22.5 trillion won, nearly half of the total 50 trillion won will be provided for SMEs, and an additional 2.5 trillion won will be spent in guarantees.
To ensure better financing to win infrastructure projects in emerging countries, funds of Economic Development Cooperation Fund (EDCF) will increase from 1.2 trillion won last year to 1.4 trillion won. The EXIM Bank plans to strengthen the EDCF’s development finance infrastructure including Public-Private Partnership (PPP) and guarantees in an effort to lighten Korean companies’ investment risk and also to attract more private investment.
