Export-Import Bank Forms Financial Support Platform with K-Sure to Foster New Industries

Maximizing the Core Functions of Policy Finance, Including Large-Scale Investment Support and Risk Sharing for New Industry Entry

The Export-Import Bank of Korea and the Korea Trade Insurance Corporation signed a business agreement on the 5th to establish a cooperative loan platform to support the overseas expansion of Korean companies, titled "K-ECA Financial Support Open Platform Formation and Operation." From the left in the photo: Visit Kyu, President of the Export-Import Bank, and Lee In-ho, President of the Korea Trade Insurance Corporation. Photo by XXX

[Asia Economy Reporter Park Sun-mi] South Korea's two export credit agencies (ECAs) have established a cooperative financing platform to jointly support exports, overseas investment, and new industries through organic collaboration.

On the 5th, the Export-Import Bank of Korea (hereinafter ‘KEXIM’) announced that it signed a "Business Agreement for the Formation and Operation of the K-ECA Financial Support Open Platform" with the Korea Trade Insurance Corporation (hereinafter ‘K-SURE’). On the same day, KEXIM President Bang Moon-kyu and K-SURE President Lee In-ho met at KEXIM's headquarters in Yeouido to sign the agreement.

The main points of the agreement between the two institutions include ▲ sharing financial support strategies by K-New Deal industries ▲ cooperation throughout the entire process of project discovery, financial arrangement, and provision ▲ financial incentives for ESG (Environmental, Social, and Governance) outstanding companies, aiming to globalize the K-New Deal and promote ESG management.

The two agencies plan to jointly inject competitive policy financing in a timely manner into new growth engines of the Korean economy such as renewable energy, advanced mobility, secondary batteries, next-generation communications, semiconductors, and healthcare. In particular, companies and projects recognized for ESG management will receive benefits such as preferential interest rates.

KEXIM provides funding to Korean companies through loans, guarantees, and investments, while K-SURE assumes external transaction risks through guarantees and insurance. KEXIM President Bang Moon-kyu stated, “Our companies are struggling in a challenging global market characterized by prolonged low growth and market restructuring due to technological innovation,” adding, “The two policy financial institutions will unite as one team to achieve a trade volume of 1 trillion dollars this year and to reclaim exports of 600 billion dollars next year.”

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