[Haneun Big Step] Muhyeop "Loan interest rates rise... Considering low-interest policy loans for export companies"

"Rising Corporate Loan Interest Rates...Challenges in Investment and Production"

Lee Chang-yong, Governor of the Bank of Korea, is striking the gavel at the Monetary Policy Committee plenary meeting held at the Bank of Korea in Jung-gu, Seoul, on the 13th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Moon Chaeseok] The Korea International Trade Association (KITA) urged the government on the 13th to consider follow-up measures such as low-interest policy financing loans. This request came amid concerns that export companies might face difficulties in investment and production after the Bank of Korea held a regular Monetary Policy Committee meeting and implemented a "big step" by raising the base interest rate by 0.5% to 2.25%.

Jang Sang-sik, Head of Trend Analysis at KITA's International Trade and Commerce Research Institute, said, "Recently, raw material prices have been rising, and with the exchange rate also increasing, the import burden on the trade industry has been significant. We believe that the Bank of Korea's decision to raise the base interest rate will help stabilize the exchange rate."

However, Jang also pointed out that while it may help stabilize the exchange rate, the rise in loan interest rates could increase the burden on companies. He stated, "However, since this interest rate hike raises loan interest rates for export initial funds and operating funds, there is a concern that investment and product production difficulties may increase. Therefore, we hope the government will also consider supporting the export industry through low-interest policy financing loans."

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