Export-Import Bank Establishes ESG Investment and Fund for Exports and Overseas Expansion of SMEs and Mid-sized Companies

Korea Eximbank Invests 100 Billion KRW... Final Fund Size Targets Over 500 Billion KRW
Part of Korea Eximbank's Profits to Be Paid as Incentives to Asset Managers... Actively Encouraging Investment in New Market Development

[Asia Economy Reporter Song Hwajeong] The Export-Import Bank of Korea (KEXIM) announced on the 10th that it will invest 100 billion KRW to establish a fund aimed at promoting investment in ESG (Environmental, Social, and Governance) sectors by Korean companies and supporting the overseas expansion of small and medium-sized enterprises (SMEs) and mid-sized companies through exports and overseas investments.

Last June, KEXIM launched the 'ESG Credit Program,' providing 16.8 trillion KRW in funding for ESG sectors, and supplied a record-high 31.4 trillion KRW to SMEs and mid-sized companies last year. The ESG Credit Program (which includes 10 programs such as the Sustainable Growth Promotion Program) offers preferential conditions to companies engaged in businesses related to environmental or social value creation items (ESG items, 145 in total) selected by KEXIM itself, supporting sustainable growth, energy transition promotion, and growth of early export companies.

Through this investment project, KEXIM plans to encourage private-led investment activation in long-term and high-risk areas of future new industries and respond to the new government's initial national agenda.

The final fund size aims to exceed 500 billion KRW. KEXIM will allocate investment amounts differentially based on the ESG and SME overseas expansion investment proposals from fund managers to maximize the inflow of private investment funds. In particular, if a company invested in by the fund produces products selected as the government's 'World-Class Products,' a portion of the profits accruing to KEXIM will be paid as incentives to the fund managers. This is to encourage the fund to invest more actively in pioneering new overseas markets.

A KEXIM official stated, "We have launched this fund to support the sustainable growth of our companies by spreading ESG management, advancing into eco-friendly and new promising industries in response to the government's 2050 carbon neutrality goal, and transitioning to low carbon, as well as to enable SMEs and mid-sized companies to secure global new markets in the post-COVID-19 era."

KEXIM's investment project is scheduled to be announced on KEXIM's website on the 11th, and after selecting fund managers and obtaining approval from the Minister of Strategy and Finance, the fund formation is targeted to be completed within this year.

Including the 16.8 trillion KRW in ESG credit support last year, KEXIM plans to provide a total of 180 trillion KRW by 2030 to support the structural improvement of Korean companies.

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