Korea Export and Import Bank (Eximbank) signed a Memorandum of Cooperation with the Export Finance and Insurance Corp. of Canberra, Australia, on Dec. 17, the Eximbank said recently.  President Lee Duk-hoon signed the instrument at the head office of EFIC in Canberra, with President Andrew Hunter signing on behalf of EFIC. The arrangement will allow for the exchange of information on Korean small- and medium-sized firms’ advancement overseas and. It will especitally perk up joint cooperation in third countries between the two financial institutions, Eximbank said.  

 The instrument is designed to foster closer cooperation between the two financial policy institutions for external financial operations of both Korea and Australia, especially to invigorate the overseas advancement of the business firms in both countries.   The agreement is also designed foster the sharing of information on overseas advancement between the two financial institutions. Not only that, but it will allow for the exchange of manpower to jointly seek out projects for business firms in their respective countries to make advancement overseas more efficient.     

With the two financial institutions engaged in the development of the financial products for small- and medium-sized enterprises and share the related information, their support for SMEs strengthens their ability to employ technologies to explore Australia for business opportunities and enter the third-world countries for operation. Before signing the MOC, the two institutions held a joint workshop at the head office of EFIC. It was designed to strengthen cooperation in the SME sector, which also gave the two financial institutions a chance to share knowledge on the support system for SMEs and experiences, as well as discuss the ways to cooperate with each other.  Australia is ranked 12th in the world in terms of economic power, boosted by ample natural resources. The free trade agreement between Korea and Australia went into force on Dec. 12, which will expand trade and investment between the two signatory nations. That will be expanded further on a mutually supplementary basis.

 The Eximbank’s signing of the MOC with EFIC at this juncture is a big boost for domestic business firms. Eximbank will be able to provide a lot of helpful information as the areas to do business and information on investments. It will also be able to search out projects in third world countries for joint ventures between Korean and Australian firms. The instrument will be a big help for Korean firms interested in doing business in Oceania nations.

 After signing the MOC, President Lee Duk-hoon said the agreement has built a base for sharing information on successful financial support, holding regular consultation meetings to strengthen mutually cooperative channels by firing up exchanges in manpower, among others. The president continued to say that the Eximbank will provide a lot of help to Korean firms to make advances overseas by strengthening Eximbank’s capacity and the network built by the two financial institutions.

 In the meantime, President Lee was to meet with Chairman Gina Rinehart of Hancock Prospecting — the largest stakeholder of the Roy Hill Iron Ores Mining Project — to take up such matters as cooperative ways to help Korean firms enter the natural resources development market in Australia. The Roy Hill Iron Ores Mining Project is the largest iron ore infrastructure project in which Korean investors hold a stake to participate in all the areas of the project such as EPC and long-term purchase of iron ore. The Eximbank provided project financing worth $1 billion to the Roy Hill Project, which is worth $12 billion.