Chairman Eun Sung-soo of the Export-Import Bank of Korea (Eximbank).

Chairman Eun Sung-soo of the Export and Import Bank of Korea (Korea Eximbank), in his New Year’s speech, said the bank will seek out export-type new growth companies in the new year, support them to expand the base of the country’s exports, and create jobs around the country.

The bank will also support emerging nations’ sustainable development and growth thru the EDCF (External Development Cooperation Fund), and at the same time do its best to support government policies for the settlement of peace on the Korean peninsula by taking advantage of the South-North Cooperation Fund, the chairman said.

The Export-Import Bank of Korea (Exim Bank), one of South Korea's state-run policy lenders, said it will provide full financial support for future inter-Korean economic cooperation projects.

With the ongoing thaw in relations on the Korean Peninsula, hopes are high for South-North economic cooperation in transportation and humanitarian sectors.

The two sides are holding working-level talks on road and railway connections.

“The bank will aim to become a cornerstone in economic cooperation with North Korea, making full use of our experience in inter-Korean economic cooperation, financing overseas projects, and ties to wide range of international financial networks.” bank President Eun Sung-soo said in a press meeting. “Exim Bank will be the supporting force in leading inter-Korean economic cooperation and development.”

He said the state-run Inter-Korea Cooperation Fund (IKCF), which is designed to finance economic cooperation and social and cultural exchange between the two Koreas, will play a role in broadening inter-Korean relations. Entrusted by the government, Exim Bank manages the 1 trillion won ($890 million) fund.

Chairman Eun Sung-soo of Korea Eximbank said that the 800 billion won will be given in the forms of loans and guarantees that the shippers can use to purchase new vessels, refinance existing debts and pay for operating expenses.

“The shipping and shipbuilding industries are both facing difficulties, raising the logistics cost for exporting firms.” Eun said at the meeting. “The five-year restructuring plan will strengthen the competitiveness of shipping companies, and when this leads to a positive cycle of creating demand for shipbuilders, such cost will be reduced.”

The Export–Import Bank of Korea has committed to provide the country’s shipping industry with 800 billion won ($750 million) worth of loans and guarantees in 2018.

The loans will be provided to shipping companies for buying ships, covering operational costs and refinancing loans, media reports citing the bank’s chairman, Eun Sung-soo. The measure is in line with the government’s five-year program aimed at revitalizing the country’s shipping and shipbuilding industry. Under the program, Korean shipping companies will be provided with the access to fresh funds for their fleet renewal programs.

At the beginning of April, South Korea said that it would build up to 200 new ships in the next three years, predominantly bulkers, 140 of them, and 60 containerships, including 20 ultra large boxships.

Hyundai Merchant Marine (HMM) is already in talks with shipbuilders on the terms of an order for a total of 20 megaships, twelve above 20,000 TEU and eight 14,000 TEU. The Export-Import Bank of Korea announced that the Bank successfully issued a USD 1 billion Global Bond to investors worldwide on Nov. 20.

A view of the building in Seoul occupied by Eximbank offices. (Photos: Eximbank)