Bang Moon-kyu, President of Su-eun Bank, "Expanding Ship Financing to 5.2 Trillion Won"

On the afternoon of the 26th, Ban Moon-kyu, President of the Export-Import Bank of Korea, visited Hyundai Heavy Industries located in Ulsan to hear about the difficulties faced by the shipbuilding industry due to the impact of COVID-19. From the left in the photo: Ban Moon-kyu, President of the Export-Import Bank of Korea, and Han Young-seok, CEO of Hyundai Heavy Industries. Photo by [photographer's name]

[Asia Economy Reporter Kangwook Cho] Bang Moon-kyu, President of the Korea Export-Import Bank, announced, "To help the shipbuilding industry overcome the crisis caused by the novel coronavirus disease (COVID-19), the ship financing support amount will be expanded from 3.8 trillion won to 5.2 trillion won."

On the 26th, President Bang visited Hyundai Heavy Industries located in Ulsan and TSP, a ship engine parts manufacturer, consecutively, and then attended the 'Shipbuilding Industry Communication Meeting' where he made this statement.

The meeting, held at Ulsan City Hall by Ulsan Metropolitan City to listen to the difficulties of the shipbuilding industry and seek support measures, was attended by a total of 10 companies including major shipbuilders and shipbuilding partners in the Ulsan area such as Hyundai Heavy Industries, Hyundai Mipo Dockyard, Shinhan Heavy Industries, Lee Young Industry, Sejin Heavy Industries, Youngkwang Workshop, Terra Tech, Dongyang Sanjeon, Nobel Precision Metals, and Swick.

At the meeting, Han Young-seok, CEO of Hyundai Heavy Industries, said, "Due to the prolonged slump in orders caused by the COVID-19 pandemic, it is expected that securing operating funds will be difficult," and requested, "We hope that ship financing will be expanded so that production financing for shipbuilding and domestic and international shipping companies can increase ship orders to our shipbuilders."

Choi Yang-hwan, CEO of Sejin Heavy Industries, said, "We hope that large shipbuilders and financial institutions will take special interest in securing work and resolving financing difficulties for small and medium-sized partner companies."

President Bang said, "Korea Eximbank has increased its funding plan for shipbuilders this year from the original 3.8 trillion won by 1.4 trillion won to 5.2 trillion won to overcome the crisis caused by COVID-19," adding, "After COVID-19, Korea Eximbank will mobilize all its capabilities to help the shipbuilding industry strengthen its global market position and overcome the crisis."

In particular, Korea Eximbank plans to expand the win-win cooperation loan from 1.6 trillion won to 1.9 trillion won in cooperation with shipbuilders so that this fund supplied to shipbuilders is primarily used as payment funds for deliveries to small and medium-sized partner companies. Through the win-win cooperation loan, when Korea Eximbank supplies funds to shipbuilders, the shipbuilders use these funds as payment for progress payments or material deliveries to small and medium-sized partner companies.

Since February, Korea Eximbank has been simultaneously extending the maturity of existing loans and providing new operating funds to small and medium-sized equipment suppliers as part of the COVID-19 financial support program.

This content was produced with the assistance of AI translation services.