KEXIM Opens Locally Incorporated Entity in Singapore to Serve as Center of Asia-Pacific Region

Korean Ambassador to Singapore Choi Hoon, Chairman Yoon Hee-sung of the Export-Import Bank of Korea (KEXIM) and Yoo Kwang-hoon, head of KEXIM Global, attend a ceremony to open KEXIM Global (Singapore), a locally incorporated entity in Singapore, on Aug. 23. (Photo: KEXIM)

The Export-Import Bank of Korea (KEXIM) held a ceremony to open KEXIM Global (Singapore), a locally incorporated entity in Singapore, on Aug. 24.

KEXIM plans to make its operation in Singapore a policy financing center to encompass the Middle East and Asia-Pacific area.

KEXIM plans to offer full support to Korean companies’ winning overseas orders and development projects by establishing networking with local major procurement entities, investment banks and international financial institutions.

Among those on hand at the opening ceremony were Korean Ambassador to Singapore Choi Hoon, KEXIM Chairman Yoon Hee-sung, and Yoo Kwang-hoon, head of KEXIM Global as well as major global investment banks, international organizations and investment fund officials.

KEXIM Chairman Yoon said, “KEXIM Global will serve as an innovation center of KEXIM to help its overseas policy financing, which has contributed to Korea’s export drive for the past 46 years, further make a leap forward.”

Chairman Yoon expressed hope KEXIM Global would serve as a post to help Korean companies, grappling with a crisis, land overseas orders and overcome export difficulties by offering flexible, creative financial solutions in keeping with a rapidly changing market situation.

Following the opening ceremony, KEXIM Global struck an agreement on investing emerging countries’ infrastructure with the International Finance Corporation (IFC) under the umbrella of the World Bank Group.

If investments are made after a future investment scrutiny is made, it would be KEXIM’s first case of making an offshore fund via the locally incorporated entity in Singapore.

KEXIM Global is predicted to establish a network of sharing investment information with international bodies and development financial institutions participating in joint investments periodically.

KEXIM Contributes 100 Billion Won to Export and Overseas Market Entry Fund

The Export-Import Bank of Korea (KEXIM) said on July 10 the financial institution will contribute 100 billion to a fund for spurring Korean companies’ investments into the ESG sector and supporting export and overseas market entry for SMEs and mid-size enterprises.

The latest funding follows KEXIM’s contribution of 100 billion won in investments in core and strategic industry sectors in the first half of this year.

KEXIM inaugurated the ESG loan program in June 2021 and offered a 16.8 trillion won fund. KEXIM also offered 31.4 trillion won, the largest-ever fund to SMEs and mid-size enterprise last year.

The ESG loan program offers preferred loan terms to help companies specializing in environmental and social value items support their sustainable growth, spur energy transition and give a helping hand to export beginners.

KEXIM’s latest contribution is designed to serve as a market assistant to spur the private sector’s investments in future new industry sectors with long-term risks and comply with the new government’s initial state agenda.

KEXIM aims to raise the ultimate size of the fund to more than 500 billion won.

KEXIM plans to max out money inflows from the private sector by dividing contributions on a differentiation basis in accordance with asset mangers’ investment suggestion amounts in the SMEs.

The policy financing institution plans to offer as incentives of asset managers parts of revenues KEXIM earns in the case products of companies investing in the fund are designated as the government’s world class items.