At the bank’s New Year’s news conference on Jan. 14, Chairman and President Lee Duk-hoon of the Export and Import Bank of Korea declared that Eximbank will keep its place as a policy loan bank in Korea this year. The event was held at the Korea Federation of Banks building in Myung-dong, Seoul.
Eximbank will do its duty to support strategic export companies to do their jobs in full this year to boost the nation’s total exports and lead the growth of the economy, Lee said.
Eximbank will release 80 trillion won in special loans this year to support strategic export firms in a bid to find new growth engines for the economy. That’s around 5 percent more than last year and the largest ever by the bank in support of the export firms.
Some 27.5 trillion won will go to construction firms to secure projects overseas, including those related to plant construction projects.
The bank will provide its financial support to the export industry utilizing its own strategy, what it calls “Integrated Advancement Strategy for Strategic Developing Countries,” designed to have the bank find overseas projects by itself and strengthen financial cooperation with the owners of those new construction projects overseas, the CEO said.
Under the strategy, the bank will hold consultations with host governments on potential business projects, including funds required on a medium-term basis, select those projects the Korean construction firms could undertake, and provide them full support.
Eximbank has set aside a total of 14.5 trillion won to support the maritime transport and shipbuilding industries, which have been having a tough time due to the downturn.
The bank will also provide financial support to the three biggest shipping firms to expand their fleets under its Echoship Fund, stake investment, and loans to purchase vessels so that they can boost their competitive power in their respective operation areas. The bank’s financial support will go to Hanjin Shipping, Hyundai Merchant Marine and Pan-Ocean.
The bank also has set up a plan to support mid-sized shipping firms by providing them with operating funds and capital to purchase new ships to strengthen their main fleets and help their growth.
The bank will also provide financial support to the service industry to boost its growth by providing it with 2.5 trillion won in financial support this yea. The goal is to create new jobs. The manufacturing industry has struggled to create jobs in recent years due to a competitive business environment.
Based on 2009 statistics, U.S. service industry jobs take up 83 percent of all jobs, Germany sits at 73 percent and Korea at 61 percent.
The bank introduced the Service Industry Global Rookie Program, using its experience in financial support, for firms operating overseas. The program has been designed to provide tailor-made financial support by industry to help find business opportunities and build both tangible and intangible infrastructure. The bank will provide a total of 26.5 trillion won to small- and medium-sized firms in policy loans. The purpose is to broaden communication with those SMEs by revising the current system.
The bank will also select 150 SMEs this year to develop them as export firms by 2017.
