Mubo Provides 100 Billion KRW Worth of 'Local Currency Finance' to Poland's Largest Telecom Company

Support for Domestic Companies' Telecom Equipment Sales
Achievements in Taiwan and Norway... $2.4 Billion in 7 Countries Over 6 Years

[Sejong=Asia Economy Reporter Kwon Haeyoung] Korea Trade Insurance Corporation (K-sure) is supporting the sales of telecommunications equipment by domestic companies by providing approximately 100 billion KRW worth of local currency financing to Poland's largest telecommunications company. It is also evaluated that by supporting localization financing in Taiwan, Norway, and other countries, it is enhancing the order competitiveness of domestic companies.

K-sure announced on the 31st that it recently provided local currency financing to the Polish telecom company P4. P4 plans to use the loan of about 460 million zloty (Polish currency, approximately 100 billion KRW) as purchase funds for goods supplied by domestic companies.

P4 is a telecommunications company with 15 million subscribers, holding the number one market share in both wireless communication and bundled services. Banco Santander, a European global bank, provides a loan in Polish local currency to P4, secured by insurance supported by K-sure. After signing the financial contract on the 22nd, the first withdrawal is scheduled for January next year.

A K-sure official said, "In industries like telecommunications where sales occur in local currency, there is high demand for financing that allows loan repayment in local currency," adding, "By providing K-sure's local currency financing to Poland's number one telecom company, a key gateway to Central and Eastern Europe, it will serve as a foothold for expanding our companies' entry into the European telecommunications market."

In addition to traditional financial support mainly in key currencies such as the US dollar, K-sure is striving to diversify order markets for domestic companies by providing localization financing to various countries using different currencies such as the New Taiwan Dollar (NTD), Norwegian Krone (NOK), and United Arab Emirates Dirham (AED). When funds are supplied in local currency to ordering parties in countries using different currencies, the ordering parties can carry out projects stably without worrying about exchange rate fluctuations. K-sure explains that local currency financing is regarded as "orderer demand-responsive financing" that enhances the order competitiveness of domestic companies.

From 2016 to this year, K-sure has supported the participation of domestic companies in projects by providing a total of approximately 2.4 billion USD worth of financing in local currency for 10 projects in 7 countries over the past six years. Representative projects include the Taiwan offshore wind power project, which received about 700 million USD in support across three projects from 2019 to 2020; the Australian railway construction project worth about 500 million USD in June this year; and the Norwegian highway construction project worth about 200 million USD in July this year. K-sure's financial structure, which enables private financial institutions handling local currency loans to quickly generate financing without the need to directly borrow local currency to secure loan funds, is enhancing the order competitiveness of domestic companies.

Lee In-ho, President of K-sure, stated, "The local currency financing provided by K-sure is functioning as a stepping stone to expand the base of our companies' overseas expansion," and added, "We will continue to strengthen the financial competitiveness of our companies through customized policy support reflecting the changing external environment."

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