Mubo Provides 3.3 Trillion Won Financial Support to Saudi Ministry of Finance... "Korean Companies to Participate in Economic Stimulus Project"

11 Months of Negotiations Since February Last Year... First Case Targeting Foreign Governments

Lee In-ho, President of the Korea Trade Insurance Corporation (left), and Fahad Al Saif, President of the National Debt Management Center of the Ministry of Finance of Saudi Arabia, pose for a commemorative photo after signing a memorandum of understanding on February 25 last year. (Photo by Korea Trade Insurance Corporation)

[Asia Economy Reporter Moon Chaeseok] The Korea Trade Insurance Corporation (K-Sure) will provide approximately 3.3 trillion KRW in financing to Saudi Arabia's smart city economic stimulus projects, contingent upon the participation of Korean companies.

On the 7th, K-Sure announced that it has decided to provide mid- to long-term financial support for the economic stimulus projects promoted by the Saudi Ministry of Finance.

K-Sure will offer overseas project finance insurance on the condition that Korean companies participate in Saudi government-led economic stimulus projects, including the construction of the NEOM Smart City, valued at about 500.5 trillion KRW, which is being actively pursued starting this year.

The loans executed under this insurance will be used for payment of export proceeds for equipment from domestic companies. If the Saudi Ministry of Finance fails to repay principal and interest on overseas project loans involving Korean exporters, K-Sure will compensate for the losses incurred by the financial institutions.

Previously, on February 25 last year, K-Sure signed a memorandum of understanding with the Saudi Ministry of Finance in Riyadh to support Korean companies in securing projects in the Saudi region.

According to K-Sure, Saudi Arabia is the top country for Korean companies in overseas project orders. Over the past 10 years, the order amount reached 70.5 billion USD (approximately 76.7 trillion KRW), accounting for 15% of the total.

Therefore, K-Sure expects this financial support to work favorably for future project orders by Korean companies in Saudi Arabia.

Following the provision of 3 billion USD (about 3.3 trillion KRW) to Abu Dhabi National Oil Company (ADNOC) in December 2019, K-Sure is once again supporting large-scale export financing to reputable clients in the Middle East region.

Lee In-ho, President of K-Sure, said, "This financial support is expected to provide considerable strength to our companies amid the still challenging overseas order environment due to the resurgence of COVID-19."

He added, "We will continue proactive financial support activities, including expanding strategic cooperation systems with reputable clients, so that large-scale economic stimulus projects in the Middle East can serve as a signal for the recovery of orders for our companies."

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