Chairman and President Lee Duk-hoon of the Export-Import Bank of Korea.(Photo:Exim Bank)

The Export-Import Bank of Korea (Eximbank) announced that it has successfully formed a 132.5 billion won global energy fund as of April 8, the bank said recently.

The bank also provided a 92.5 billion won investment as an anchor investor last year to five PEFs in three areas totaling 770 billion won to help SMEs and medical service clinics advance overseas, along with global energy exploration and infrastructure construction.

Eximbank invested 30 billion won, or 23 percent in its Energy Infrastructure Fund totaling 132.5 billion won. Other investors included a number of private banks such as Shinhan Bank and Korea Investment and Securities Co., together with a number of mutual aid associations such as the Science Technology Mutual Aid Association and the Military Mutual Benefit Association, with each of those entities chipping in from 20 to 30 billion won.

Eximbank was said to have secured leverage with its limited funding sources to help the Korean business firms advance and operate overseas, and at the same time invite domestic funds to advance overseas together with the bank.

It’s hard to create funds related to overseas energy exploration and infrastructure construction from domestic investors and EQ Partners. A professional firm managing overseas energy and infra funds will take charge of managing the fund. The EQ partners have been engaged in investment funds for energy exploration only at home and abroad, with the funds under its management totaling around 1.5 trillion won and 1 trillion won invested in overseas energy exploration areas.

The Energy Infra Fund will go mostly toward overseas energy infra projects, the export of major equipment for infrastructure construction and management, and projects that import major resources into Korea and with Korean investors owning pieces of stakes.

Officials of the bank said the Energy Infra Fund will be helpful to the Korean construction firms operating overseas in securing plant construction projects overseas, especially projects that owners want to have the builders also coming up with financing packages in their bids, including investments and loans.

Eximbank has succeeded in creating three funds out of the five the bank attempted to form last year, with two of them designed to help SMEs go overseas, exceeding 470 billion won targeted originally at 530 billion won with the intensive participation by civilian-sector investors.

The Export-Import Bank of Korea is an official export credit agency providing comprehensive export credit and guarantee programs to support Korean enterprises in conducting overseas business. Since its establishment in 1976, the bank has actively supported Korea's export-led economy and facilitated economic cooperation with foreign countries. Eximbank's primary services include export loans, trade finance and guarantee programs structured to meet the needs of clients in a direct effort to both complement and strengthen the clients' competitiveness in global markets. The bank also provides overseas investment credit, natural resources development credit, import credit, and information services related to business opportunities abroad. 

Furthermore, the bank is responsible for the operation of two government funds: the Economic Development Cooperation Fund (EDCF), a Korean Official Development Assistance program and the Inter-Korean Cooperation Fund (IKCF) — an economic cooperation program with North Korea. 

The bank strives to become the “Global Financial Partner Connecting Korea to the World" as reflected in its vision by continuously fostering innovation and development throughout its operations, according to the bank.