KOTRA, Bangsacheong, and Mubo Provide Financial Support to Defense Companies... "100 Billion KRW Supply by End of April"

June 6 Defense Export Finance Support Agreement
"Alleviating Difficulties from Interest Rate Hikes and Collateral Shortages"

KOTRA, the Defense Acquisition Program Administration (DAPA), and the Korea Trade Insurance Corporation (K-sure) will jointly begin financial support to assist defense industry companies in securing funding. They plan to supply approximately 100 billion KRW in liquidity funds to the market as early as the end of this month.

On the 6th, the three organizations, along with Shinhan Bank and Gyeongnam Bank, signed a business agreement for defense export financial support at the Government Sejong Convention Center. Jang Young-jin, the 1st Vice Minister of the Ministry of Trade, Industry and Energy, attended the event.

This is a follow-up measure to the 'Defense Export Strategy Meeting' announced in November last year and the '10th Defense Development Council' held in February this year. The plan is to support defense companies facing difficulties in financing due to rising interest rates and lack of collateral.

Preparing for K9 self-propelled artillery training in Paju-si, Gyeonggi-do on January 5th. [Image source=Yonhap News]

KOTRA’s Defense Materials Trade Support Center (KODITS) is the dedicated inter-ministerial agency for supporting defense material exports. DAPA is the main government agency in charge of the defense industry. K-sure is the leading export finance institution.

The three organizations will finalize the detailed plans for export finance support projects and then collaborate with commercial banks.

Um Dong-hwan, Administrator of DAPA, said, "We expect this to be a great help to domestic defense companies struggling with financing after the large-scale defense export contract with Poland," and added, "We will continue to work to enhance the stability of the defense supply chain ecosystem to realize national security and economic security."

Lee In-ho, President of K-sure, stated, "By newly introducing customized financial support for defense exports, we will contribute to strengthening the global competitiveness of the defense industry."

Yoo Jung-yeol, President of KOTRA, said, "We plan to provide generous support so that the defense industry can grow into a key sector driving Korea’s economic export growth."

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