Public-Private 'Win-Win Trade Finance' to Expand to 10 Trillion Won... Full Response to Middle East Crisis

Kim Jungkwan, Minister of Trade, Industry and Energy, is delivering opening remarks at the Win-Win Trade Finance Expansion Meeting held on the 14th at the Korea Trade Insurance Corporation's main conference room in Jongno-gu, Seoul. Ministry of Trade, Industry and Energy.

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The government has announced plans to establish 10 trillion won worth of Win-Win Trade Finance by the end of this year in response to external economic uncertainties stemming from the prolonged war in the Middle East.

The Ministry of Trade, Industry and Energy revealed this plan at the "Win-Win Trade Finance Expansion Meeting" held on April 14 at the Korea Trade Insurance Corporation in Jongno-gu, Seoul.

Win-Win Trade Finance is a public-private partnership model in which export companies, private banks, and policy finance institutions jointly contribute funds, and Korea Trade Insurance Corporation guarantees are combined to provide low-interest, high-limit financing support to partner companies. It is regarded as a key tool for stabilizing supply chains, as it enables financial support up to 60 to 80 times the amount contributed by companies.

Since its inception with Hyundai Motor Company and Kia in August last year, Win-Win Trade Finance has expanded across heavy industries such as steel and shipbuilding. On this day, the scope of participation widened to include consumer goods companies, bringing the total fund size to 1.7 trillion won to date. The government plans to expand this to 10 trillion won within this year.

Accordingly, Kolmar Korea and Woori Bank will jointly contribute 10 billion won to provide 174 billion won in financing to over 160 partner companies. Similarly, Musinsa and Woori Bank will provide 5.75 billion won to support 100 billion won in financing for over 200 partner companies. In particular, reflecting the characteristics of the consumer goods industry, which has many small partners, a rapid support system such as non-face-to-face guarantees will also be introduced.

Separately from Win-Win Trade Finance, the government will also provide 3 trillion won in emergency trade finance using the supplementary budget. This will support import funds for industries facing supply chain instability, such as petrochemicals and energy, along with expanded export insurance and liquidity support for small and medium-sized enterprises.

Additionally, Woori Bank and Korea Trade Insurance Corporation have agreed to provide an extra 3 trillion won in preferential financing through a separate agreement. As a result, the total financial support capacity, combining public-private partnership finance and policy support, will expand to a maximum of 16 trillion won.

Kim Jeong-kwan, Minister of Trade, Industry and Energy, stated, "Win-Win Trade Finance is more than just support; it is a core safety net that protects the industrial ecosystem and supply chain. By spreading a structure where large companies and financial institutions work together to safeguard their partners, we will continue to strengthen export competitiveness."

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