The new year’s management strategy of the Export and Import Bank of Korea (Eximbank) should be to strengthen its internal operation based on reformed systems and organization. At the same time, Eximbank should do all it can to strengthen the competitive position of its business, said Chairman and President Lee Duk-hoon at a New Year’s ceremony on Jan. 2 at the bank’s head office.
“But before we set out to do that, we have to consider various conditions surrounding our operation, including the economy and the financial market,” he said.
The chairman pointed out U.S. interest rate changes and output reduction by OPEC nations impacting the global economy, exchange rates and oil price fluctuations increasing global economic uncertainty.
The chairman also noted the reduction in Korea’s exports to China, even though it’s been one year since the FTA with China went into effect, demonstrating that Korea should further diversify its exports.
Chairman Lee also brought up changes in the U.S. administration with President-elect Trump slated to take over as Chief Executive on Jan. 20, which has the entire world speculating on the policy direction of the Trump administration, especially in key areas such as finance, trade and investment, clouding Korea’s international trade situation this year and beyond. Given the conditions noted above, the Eximbank says it will make 2017 the initial year for South Korea’s sustainable growth management. The bank will employ any means necessary to foster new growth engines that will sustain the growth of the Korean economy for a long time into the future.
First, the chairman wants the traditional export industry to become a high value-added growth industry. The bank should help traditional exporters reform their structures to continue to be part of the export industry.
Korean construction firms operating overseas should expand their operations into such areas as industrial development, investments as well as operation and management to improve their chances of staying alive. He said Eximbank is there for them.
The chairman also predicted that oil-producing countries would also resume ordering projects. Emerging countries in Asia also seem likely to order projects related to infrastructure, and the bank should help the overseas Korean firms looking for projects.
Eximbank should have in mind changing the export portfolios by developing new growth industries to be export-oriented to diversify Korea’s export structure so the country would be less impacted by changes in international trade.
The bank should also help Korean business firms cope with the 4th Industrial Revolution through detailed and effective support plans, the chairman said.
Second, the chairman said the bank should lead moves by export firms to knock down walls obstructing exports by exploring new markets for goods and services. Financing should be provided from development funds, the EDCF and other policy financing which Eximbank has accesses to. They should be supplied in tailor-made packages for each country targeted by Korean exporters.
The bank should also support Korean firms take over companies that have superior technologies in places like the U.S. and EU so they can have accesses to technologies that will make them instantly competitive. Those companies should be provided with funds for M&As and other investments.
The chairman said every officer and staff member with the bank should do their best to open up markets in every nook and cranny of the world for the country’s exports.
Since its establishment in 1976, Korea Eximbank has actively supported Korea’s export-led economy and facilitated economic cooperation with other countries. Korea Eximbank’s primary services include export financing, trade financing, and guarantee programs structured to meet the needs of clients in a direct effort to both complement and strengthen clients’ competitiveness in global markets. The Bank also provides overseas investment financing, import financing, and financial advisory and structuring services aimed to exploit business opportunities abroad.
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