Korea Eximbank to boost project, SME financing

Eximbank will provide project financing worth 21 trillion won ($19 billion) this year, up from 19 trillion won last year.

It will not only participate as a financial provider, but will invest in equities of infrastructure projects with private companies to further guarantee and secure deals, according to Kim Yong-hwan, president of Korea Eximbank.

Its financial advisory services will expand this year for Korean companies seeking to secure several infrastructure deals.

The state-run policy bank will increase its support in financing overseas projects such as energy plants, highways, railroads, resources and other areas of construction to help Korean companies win deals and create jobs.

This move comes as Korea faces tough competition from Japan and China in the infrastructure sector.

He sees Japan as a prominent competitor especially this year as its companies seek growth overseas on a weak yen amid the economic slowdown at home.

“Eximbank’s project financing is to back Korean companies, not to lose bids against their counterparts abroad,” Kim said.

The policy bank will also extend SME loans worth 22.5 trillion won, accounting for 45 percent of the 50 trillion won it has set aside for loans in total.

Kim said it hopes to help small businesses grow into mid-tier companies and assist in financing SME exports of entertainment and cultural content, and biotech and pharmaceutical products.

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