Export-Import Bank to Provide 65 Trillion Won Support Until 2025 to Address Supply Chain Crisis

by Yoo Jaehoon

Published 30 Aug.2023 07:35(KST)

The Export-Import Bank of Korea announced on the 30th that it will provide financial support of 65 trillion won by 2025 through the expansion and reorganization of the 'Supply Chain Stabilization Finance Program.' The expanded and reorganized program is scheduled to be implemented from the 1st of next month.

Export-Import Bank to Provide 65 Trillion Won Support Until 2025 to Address Supply Chain Crisis

Last January, the bank established this program with a support target of 15 trillion won to respond to the global supply chain crisis. In total, the bank provided 22 trillion won last year for securing raw materials, expanding logistics infrastructure, and supplying emergency liquidity to small and medium-sized enterprises and mid-sized companies.

Through this expansion and reorganization, the bank has broadened the support areas for supply chain stabilization and subdivided the existing five support sectors into twelve sectors (resource development and import, resource processing, resource recycling, securing food resources, logistics infrastructure, global transportation, logistics services, overseas production base establishment, import substitution, reshoring, friends-shoring, and emergency crisis response support) to eliminate blind spots in support.

In addition to expanding fund supply, the bank plans to select seven key minerals (lithium, nickel, cobalt, manganese, graphite, aluminum, copper) and four major food resources (wheat, soybeans, corn, palm oil) and reduce loan interest rates and guarantee fees when providing financial support related to imports and overseas projects.

Meanwhile, if the 'Basic Act on Supply Chain Stabilization Support for Economic Security,' which was approved at the full meeting of the National Assembly's Planning and Finance Committee on the 24th, passes the plenary session, the bank plans to operate the 'Supply Chain Stabilization Fund' according to the law. Through this fund, the bank intends to focus on supporting supply chain stabilization projects for essential economic security items from the perspective of national economic security.

An official from the bank stated, "We will continue comprehensive support in line with the government's economic security strengthening policies so that our companies can overcome the supply chain crisis."