Korea Trade Insurance Corporation Supports Domestic Companies Entering Mexico... Provides 1.1 Trillion KRW in Financing

[Sejong=Asia Economy Reporter Kwon Haeyoung] Korea Trade Insurance Corporation (K-SURE) will provide long-term financing worth 1.1 trillion KRW to the Mexican government to expand the participation of domestic companies in Mexican projects.

On the 12th, K-SURE signed a business agreement with the Mexican Ministry of Finance to promote export expansion and activate overseas business participation of domestic companies. According to the agreement, both institutions will cooperate to enable the export of Korean goods and services to projects promoted by the Mexican government and public institutions.

In particular, K-SURE will provide approximately 1.1 trillion KRW in low-interest long-term financing to the Mexican Ministry of Finance on the condition that Korean companies participate in Mexico's economic stimulus projects. The loan executed by banks, secured by insurance policies issued by K-SURE, can be used for the export of equipment and services by domestic companies as well as payment for related construction work.

With the expansion of infrastructure investment by the Mexican government, the project order performance of domestic companies increased from 400 million USD (14th place) in 2019 to 3.7 billion USD (2nd place) last year. Interest in the Mexican market has also risen among construction and plant industries.

A K-SURE official stated, "The Mexican government recently announced an additional investment plan worth 26 billion USD for economic stimulus," adding, "This cooperation system will help promote the entry of our companies into the Mexican market."

Furthermore, both institutions agreed to hold the 'K-SURE Vendor Fair,' an equipment export consultation event, in the second half of this year. The Vendor Fair is an event where K-SURE invites overseas clients to meet directly with domestic small and medium-sized enterprises (SMEs) and mid-sized companies to register as vendors and sign equipment export contracts, aiming to expand their participation in overseas projects. Since 2018, through a total of five events, 53 SMEs and mid-sized companies have been registered as vendors for equipment supply, resulting in new export contracts worth 222 billion KRW.

Lee In-ho, President of K-SURE, said, "We will continue to provide comprehensive support, including financial and non-financial assistance, so that our construction and plant companies with extensive experience in completing large infrastructure projects and SMEs and mid-sized equipment export companies with technological capabilities can secure new growth engines."

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