Export-Import Bank of Korea Expands Financial Support for Innovation-Powered Industries
트위터 페이스북 미투데이
Global News Network
HOME      ABOUT US      NW 기획정보
ARCHIVE      GALLERY      LOGIN
Export-Import Bank of Korea Expands Financial Support for Innovation-Powered Industries
Implements speedy export and import loan program for SMEs financially hurt by the novel coronavirus

22(Wed), Apr, 2020




The Export-Import Bank of Korea holds a meeting presided over by Bang Moon-kyu (before the monitor at the center), chairman-president of the state-run Export-Import Bank of Korea in order to help Korean companies suffering from the spread of the COVID-19 virus with emergency financial support through a videoconference with 13 branches across the country at its Suwon Branch. (Photo: Export-Import Bank of Korea)




The Export-Import Bank of Korea is pursuing innovative finance in an effort to serve as a leading player in revving up the Korean economy.


In response to the government’s policy to foster the 4th industrial revolution, the bank is expanding financial support for innovation-powered industries. Support for such industries amounted to 7.8 trillion won, an increase of 63 percent, from 4.8 trillion won in 2018.


In particular, the Export-Import Bank of Korea is focusing on giving M&A and R&D support to secure new technologies for innovation-powered industries. The bank is expanding support in new fields by providing preferential conditions.


It plans to provide a total of 5.55 trillion won over the next three years to help Korean companies secure new technologies and develop core technologies in three new industries (system semiconductors, bio-health, and future vehicles) and materials, parts, and equipment.


The Export-Import Bank of Korea is providing customized support that matches the characteristics of industries.


For the system semiconductor industry, its financial support is optimized for company size, production cycles and use.


Companies engaged in the bio-health sector are effectively supporting financial resources through a two-track strategy with a focus on investment and credit, taking into account the characteristics of new drug development and contract manufacturing organization (CMO) production.


In order to secure new technologies and support sustainable growth of Korean companies, the bank also established an overseas M&A collaboration system with related organizations. It continues to conduct strategic business alliances with global commercial banks.


The Export-Import Bank of Korea issued foreign currency commercial papers (CPs) since March 19 amid deteriorating financial market conditions. The bank said on March 23 that it raised $1.02 billion.


Foreign currency commercial papers are short-term bonds issued by financial institutions or companies with good credit in foreign financial markets when they want to raise short-term foreign currency funds.


The Export-Import Bank of Korea issued $10.2 billion worth of CPs mainly to European institutional investors over three business days. The CPs consisted of $300 million for six months, US$300 million for six months, US$0.2 billion for six months, and $400 million for nine months. They were issued from March 19 to 23.


“We successfully issued CPs abroad despite the volatility of the financial market expanded by the novel coronavirus fiasco,” an Export-Import Bank of Korea official said. “The Export-Import Bank of Korea is a foreign currency financing organization that represents Korea.


Therefore, we will put our utmost efforts in order to raise foreign currency funds through our network and stably supply them to Korean companies.”


To promptly supply capital to import and export SMEs financially hurt by the novel coronavirus, the Export-Import Bank of Korea announced on April 5 that it has implemented the Speedy Export and Import Loan Program for Small and Medium-Sized Enterprises (SMEs). The program is worth 200 billion won and is being made available to those businesses in earnest.


 The Speedy Export and Import Loan Program can quickly provide financial support due to the spread of the novel coronavirus. A quantitative evaluation takes place based on financial statements, without additional collateral or credit evaluation procedures.


This is part of an emergency financing program announced by the Export-Import Bank of Korea on March 25. Its loan limit is up to three billion per company, and the limit is expanded to up to 10 billion won for companies in the field of innovation growth or in the materials, parts, and equipment industries.


Companies have been showing positive responses to the loan program.


The Export-Import Bank of Korea has provided six billion won in support funds to five companies in four days since the bank began to loan on March 31. As of April 5, 80 companies were discussing receiving loans.


   
Most Popular


기사제보      광고문의      구독신청      번역의뢰      업무제휴      PR대행      보도자료      리소스 센터      Previous Site
Copyright(c) 2013 NewsWorld, All right reserved. / 3f, 214, Dasan-ro, Jung-gu, Seoul, Korea 100-456 / http//www.newsworld.co.kr
If you have any question or suggestion, please cuntact us by email: news5028@hanmail.net or call 82-2-2235-6114 / Fax : 82-2-2235-8864
홈페이지와 콘텐트 저작권은 뉴스월드에 있습니다.