Eximbank to Lead Inter-Korean Economic Projects with Financial Products and Services
Chmn. Eun unveils Vision 2030, with the bank celebrating its 42nd anniversary this year to unfurl financial know-how to provide tailor-made financial products and services for successful completion of inter-Korean economic projects
Chairman and President Eun Seong-soo of the Export and Import Bank of Korea addresses the bank’s 42nd anniversary held July 3 at the Korea Federation of Banks building in Seoul.
The Export and Import Bank of Korea (Eximbank) will try to lead various economic projects between the two divided Koreas by providing appropriate financial products and services. Eximbank will utilize its experience in managing the Inter-Korean Cooperative Fund and its vast international network for global finances, Chairman Eun Seong-soo said on July 3.
At a meeting with the reporters on the occasion of the bank’s 42nd anniversary this year at the Federation of the Banks in Myeongdong, downtown Seoul, the chairman unveiled the bank’s Vision 2030 spelling out the bank’s plans for its management of the EDCF, the inter-Korean Cooperative Fund and the export finance providing tailor-made financial products and packages in the inter-Korean economic projects in particular.
Eximbank’s major function will be policy finance for overseas and cooperative projects for North Korea, switching from its major role to prevent defaults on loans and reform its operations at home and abroad, the chairman said. “Eximbank must play the major role in the provision of policy loans to get the inter-Korean projects going now that tensions on the Korean Peninsula are about to ease with North Korea declaring its will to give up nuclear weapons and related facilities,” said Chairman Eun.
The chairman expected that the South-North Cooperative Fund will be increased in the days ahead as the inter-Korean economic projects expand from 1.618.2 trillion won.
He said that inter-Korean economic projects – the main areas of the economic cooperation between the two Koreas – would be of great help to the infrastructural construction projects, but it is difficult to project how much of a boost will be seen from the inter-Korean economic cooperation fund, as it will involve parliament and unpredictable situations in North Korea.
He said, however, that the general idea of an increase can be gleaned from the amount of the fund at the early stages of the five-year economic development projects.
Chairman Eun said he will lead the bank to pursue its overseas economic development thru the international tie-ups with the governments of emerging nations and international organizations including the EDCF to support our companies to capture overseas biz projects. Eximbank has been managing the EDCF assigned by the government since 1987 to facilitate economic cooperation with emerging nations by providing low-interest loans.
Eximbank will have total outstanding loans coming to around 200 trillion won by 2030 and will log around 1 trillion won in net profit annually, pledging that the bank will try to secure balance in its policy finance and financial stability while working hard to strengthen the stable management of its operation.
In addition, it operates the Economic Development Cooperation Fund and the Inter-Korean Cooperation Fund. The company’s loan products include export-related loans consisting of export promotion loans, export growth loans, export project loans, and export facilitation loans; import-related loans comprising import loans and import facilitation loans; and overseas business-related loans, such as overseas investment loans, overseas project loans, overseas business loans, overseas business facilitation loans, as well as interbank credit facility extended to foreign banks to serve Korean exporters and Korean businesses overseas.
As of Dec. 31, 2016, it operated 10 domestic branches, 3 domestic offices, and 22 overseas offices. The Export-Import Bank of Korea was founded in 1976 and is headquartered in Seoul, South Korea. The Export-Import Bank of Korea provides loan and guarantee programs to support Korean companies conducting business internationally.
A view of the building in Seoul where Korea Eximbank has offices.(Photos:Korea Eximbank)