Export-Import Bank and Hana Bank Join Forces to Pioneer Emerging Markets in New Southern and New Northern Regions

Joint Support with Hana Bank through Jeondaegum Financial Debt Guarantee This Month... Helping Our Companies Export to Uzbekistan
President Bang Moon-kyu: "The Two Banks Will Cooperate to Actively Support Our Companies' Overseas Business Expansion"
President Ji Sung-kyu: "Concrete Efforts to Enhance Our Companies' Trade Competitiveness"

Sangkyu Bang, President of Korea Development Bank (left in the photo), and Seonggyu Ji, CEO of Hana Bank, met on the afternoon of the 23rd at the KDB Yeouido headquarters to sign a Memorandum of Understanding (MOU) for global transaction financial cooperation to support domestic companies' entry into the global market.

[Asia Economy Reporter Kangwook Cho] The Export-Import Bank of Korea (KEXIM) and Hana Bank have strengthened their financial cooperation to support domestic companies' entry into the global market.

On the afternoon of the 23rd, KEXIM President Bang Beom-gyu and Hana Bank CEO Ji Sung-kyu met at KEXIM's Yeouido headquarters and signed a memorandum of understanding (MOU) for global transaction financial cooperation between the two banks, KEXIM announced on the 24th.

The MOU signed by the two banks includes key points such as △ activation of on-lending finance to pioneer emerging markets like the New Southern Policy and New Northern Policy regions △ strengthening trade finance collaboration for domestic export-import companies △ expanding cooperation in financial support for overseas investment and resource development.

At the signing ceremony, President Bang said, "Since 2013, the two banks have jointly supported $4 billion in syndicated finance, $4.8 billion in project finance (PF), and 13 trillion won in trade finance," adding, "Building on this cooperative foundation, both institutions will further collaborate to actively support our companies' overseas business expansion."

CEO Ji also stated at the same event, "Through this comprehensive MOU with the Export-Import Bank of Korea, we will continue concrete efforts to jointly discover and actively support domestic export-import companies and enhance the trade competitiveness of our companies," and added, "We hope that financial support for domestic exporters entering emerging markets under the New Southern and New Northern Policies will expand further and help companies struggling due to the impact of COVID-19."

Recently, on the 5th, the two banks jointly provided financial support by utilizing KEXIM's on-lending finance when a domestic company exported electronic production equipment to Uzbekistan. On-lending finance is a financial system where KEXIM sets a credit line with a local overseas bank, which then procures funds under more favorable conditions from KEXIM and lends to local companies that have business relations with Korean companies.

Through NBU (Uzbekistan's top state-owned bank), KEXIM's on-lending bank in Uzbekistan, loans totaling 28 million euros?15 million euros from KEXIM and 13 million euros from Hana Bank?were extended to local companies importing products from domestic companies, enabling smooth collection of export payments for Korean companies.

Notably, this financial support was the first to provide a 'debt guarantee' to a private financial institution since KEXIM introduced the on-lending finance system. Going forward, when domestic banks enter emerging countries such as Africa or the CIS where they have no overseas branches, KEXIM plans to provide on-lending finance debt guarantees to expand joint entry with private capital.

KEXIM and Hana Bank plan to strengthen cooperation such as joint loans for overseas infrastructure projects, leveraging the momentum of this MOU signing.

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