The Export-Import Bank of Korea (Korea Eximbank) announced on Nov. 30 that it held the First EDCF Environmental and Social Advisory Meeting at its headquarters in Yeouido, Seoul.
Korea Eximbank has been entrusted by the Ministry of Strategy and Finance to operate and manage the economic aid fund for developing countries since 1987.
Korea Eximbank’s EDCF Environmental and Social Advisory Council was established to collect broad opinions about environmental and social issues in the EDCF project from external experts in advance.
It is expected that environmental and social risks that may arise when implementing the EDCF project can be prevented in advance from the initial stage of the project with the launch of the advisory meeting.
The advisory committee consisted of nine external experts in the environmental sector including academia, research institutes, civil society organizations, and associations.
In the future, the EDCF Environmental and Social Advisory Council plans to identify the flow of environmental and social policies at home and abroad, seek new directions for EDCF Safeguard Policy and check the preparation status of individual projects as a preventive measure.
At the first advisory meeting held on the same day, detailed discussions were held with respect to environmental and social risks and reduction measures for new projects being pursued in India and El Salvador after checking EDCF safety policies.
“While Korea’s ODA has grown in quantity over the past decade, EDCF has played a big role in creating infrastructure for economic development in recipient countries,” said Yoon Jong-soo, a former director of the United Nations Center for Sustainable Development appointed as chairman of the advisory committee.
Korea Eximbank recently announced an ESG management roadmap and declared a leadership in strengthening its global ESG competitiveness.
“The EDCF project will also actively reflect contents discussed at the Environmental and Social Advisory Meeting in order to meet ESG management in the preparation and review of the project,” said Lee Sang-ho, head of the EDCF Coordination Group.
In the meantime, Korea Eximbank, which has emphasized the facilitation of access to policy funds since early this year, has made its first achievement in digital innovation.
Korea Eximbank announced on Dec. 1 that it will operate the Overseas On-Lending Digital Platform that allows corporate customers and brokerage financial institutions to go online to know whether they can receive loans in real time and progress screening.
Overseas on-lending is an indirect financial product through which brokerage financial institutions lend funds for operation, facilities and overseas business from Korea Eximbank to qualified small and medium-sized companies through their own reviews.
In 2015, the first year of its introduction, Korea Eximbank’s overseas on-lending support amounts stood at only 59.7 billion won for 77 companies but surpassed 6 trillion won for 4,300 companies in 2021.
As Korea Eximbank’s online service went into operation on Dec. 1, small and medium-sized companies in need of funds are now able to easily find out whether they can receive loans and obtain information on customized products through non-face-to-face services when they access the digital platform.
In particular, the introduction of the Simple Import and Export History Service is expected to drastically easy burdens on corporate customers that have submitted documents proving import and export records.
If a company agrees to terms and conditions of the BankTRASS by the Korea Trade Statistics Promotion Institute, the company will be able to receive a screening process for a loan without submitting documents related to trade records.
The Overseas On-Lending Digital Platform significantly boosted convenience for brokerage financial institutions as well.
Brokerage financial institutions that signed brokerage loan agreements with Korea Eximbank will be able to check loan availability, interest rate information and progress in screening in real time through online services in the future.
“The operation of the Overseas On-Lending Digital Platform has enabled small and medium-sized companies with limited human resources to easily check loaning requirements and conditions and loan products without visiting brokerage financial institutions many times,” a Korea Eximbank official said.
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