Chairman Bang Moon-kyu of Korea Eximbank and President Jang Jae-hoon of Hyundai Motor gesture after signing an MOU on future mobility on April 1. (Photo: Korea Eximbank)

The Export-Import Bank of Korea (Korea Eximbank) , also known as the Korea Eximbank, and Korea Trade Insurance Corporation (K-SURE) signed an agreement on April 5 to form and operate an open platform for financial support to establish a cooperative loan platform for Korean companies wishing to enter overseas markets.

This means that the two leading Korean export credit agencies (ECAs) saw eye to eye on teaming up for greater goals.

Korea Eximbank and K-SURE announced at the headquarters of the Korea Eximbank in Seoul that they signed an agreement to build a K-ECA financial support open platform.

The plan is to set up a cooperative system between Korea's leading export-supporting financial institutions to support Korean companies in the global green and digital markets and environmental, social, and governance (ESG) management.

Under the agreement, the two organizations will discover promising companies and projects by sharing export and overseas investment information in the K-New Deal and ESG fields and cooperate in the entire process of offering financial support, such as marketing, financial arrangement and financing.

In particular, they will give priority to items powering new growth engines such as renewable energy, high-tech mobility, secondary batteries, wireless communications, semiconductors and healthcare products.

Financial incentives will be offered to companies that have been recognized for their excellent ESG management and ESG projects.

In particular, the two companies will cooperate in financial support for small and medium-sized companies in areas eligible for support, and will step up efforts to develop green and digital industrial ecosystems by arranging the participation of Korean financial institutions.

“The agreement will further boost K-New Deal industries’ global competitiveness and ESG management environments as the pact will lead to building a policy financing platform supporting Korean companies’ exports and overseas investment,” a K-Sure official said.

“The Korea Eximbank and K-SURE expect an inflow of private investment and market funds into the high-growth K-New Deal and ESG sectors as the two companies agreed to share risk through policy insurance and guarantees.”

K-SURE runs improved export insurance and guarantee systems for exporters in the green and digital sectors, including overseas orders, securities for export receivables, financial support for operating and facility funds, and the early encashment of export receivables.

“The Korea Eximbank and K-SURE will further cement Korea’s industrial base by quickly providing policy finance for globalization and ESG management and make more efforts to give support to small and medium-sized companies,” said an official at the Korea Eximbank.

In the meantime, Bang Moon-kyu, chairman of the Korea Eximbank, met with Hyundai Motor CEO Chang Jae-hoon at the bank’s headquarters in Yeouido, Seoul and signed an MOU to provide policy financing to Hyundai Motor seeking to successfully transform into a smart mobility solution company on April 1.

The agreement was signed to strengthen Hyundai Motor's future mobility business capabilities and early penetration of overseas markets.

Under this agreement, Hyundai Motor will be able to receive three trillion won in support funds from the Korea Eximbank and use the funds for the development of its future mobility business by 2023.

Funds will be channeled into research and development, facility investments both domestic and overseas, as well as merger and acquisition deals aimed at helping the company and its suppliers reach an advantageous position in the future mobility market.

The bank will provide multi-pronged support across future mobility sectors to help them develop source technology, establish a mass production system, and grow businesses overseas.

Since the carmaker’s partners include small- and medium-sized companies (SMEs), the bank took into account building a sound ecosystem for the future mobility market and included SMEs as its target companies for financial support.

“Hyundai Motor has developed into a major carmaker since manufacturing the Pony, Korea’s first domestically made car, in 1975,” Bang said after signing the agreement, adding “The Korea Eximbank will play a leading role in helping Hyundai Motor dominate the future mobility market with the financial support program since no winners have yet been decided.”