The Export-Import Bank of Korea (KEXIM) has decided to provide a $100 million (13.25 billion won) loan to war-stricken Ukraine.
Ukrainian Finance Minister Serhiy Marchenko signed the $100 million loan agreement with the Export-Import Bank of Korea on Oct. 2, the Ukrainian Finance Ministry announced.
The loan has a 20-year maturity, a five-year grace period, and an interest rate of 1.0 percent per annum, marking Korea’s first financial support for the Ukrainian government.
In April, the Korean government announced at the 5th Ukraine Support Conference in the United States that it will disburse $2.1 billion from the External Development Cooperation Fund (EDCF) to Ukraine in the medium to long term.
Ukraine, which has been at war with Russia for three years, finances about 60 percent of its government budget through foreign loans and grants.
“This $100 million loan will be the first financial support from the Korea government to the Ukraine government,” said an official at the Ukrainian finance ministry.
“Despite the fact that Ukraine and Korea are thousand kilometers apart, our partnership continues to strengthen. We appreciated Korea’s constructive cooperation in mobilizing financial resources for Ukraine’s urgent budgetary needs.”
Support for Supply Chain Stabilization Fund
The Export-Import Bank of Korea announced on September 29 that it will provide 150 billion won in support of four Korean companies through the Supply Chain Stabilization Fund.
On Sept. 27, the bank held the second Supply Chain Stabilization Fund Management Council meeting at its headquarters in Yeouido, Seoul.
It deliberated and decided on four Korean companies’ businesses to be supported by the Supply Chain Stabilization Fund which was officially launched on Sept. 5.
The council approved the expansion of EcoPro Materials’ production facilities for cathode materials for secondary batteries, Kumsung E&C’s import of urea, Star Group Industry’s production of rare earth permanent magnets and Farmstory’s purchases of feed grains as businesses to be supported.
The Export-Import Bank of Korea has the Supply Chain Stabilization Fund under management to systematically support Korean companies’ supply chain stabilization projects in accordance with the Basic Act on Supporting Supply Chain Stabilization for Economic Security.
The bank will raise financial resources in the range of up to 5 trillion won in the second half of this year through the issuance of government-guaranteed fund bonds.
We will actively support the strengthening of Korean companies’ supply chain crisis response capabilities in the field of economic security such as high-tech strategic industries and essential goods,” said an official of the KEXIM.
Seminar for Korean Companies’ Overseas Businesses
The Export-Import Bank of Korea announced that it held a seminar under the theme of “The Latest Environmental and Social Regulations and Precautions for Korean Companies’ Overseas Businesses” in collaboration with ERM Korea, a global environmental and social consulting firm in Korea and Yulchon Law Firm at the bank’s headquarters in Yeouido, Seoul on Sept. 26.
The seminar was attended by more than 170 executives and employees from 110 companies in related fields such as overseas infrastructure and resources development, secondary batteries, and semiconductors.
The seminar’s participants shared the latest global environmental and social regulation trends and discussed responses from Korean companies that are promoting overseas businesses related to supply chain stabilization.
The seminar focused on global supply chain regulation trends and directions for Korean companies’ responses, environmental and social response strategies when building overseas supply chains, and information on the Export-Import Bank of Korea’s Environmental Review System, Supply Chain, Stabilization Fund and ESG Consulting Support System.
The Supply Chain Stabilization Fund was established at the Export-Import Bank of Korea in accordance with the Basic Act on Support for Supply Chain Stabilization for Economic Security enacted in December 2023.
The bank will manage the fund by raising its amount to up to 5 trillion won in 2024 through government-guaranteed stabilization fund bonds.
As a non-financial service scheduled to be implemented in the third quarter, the ESG Consulting Support System gives money to Korea’s small and medium-sized exporters so that they will be able to receive consulting with the money to respond to global ESG regulations.
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