IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 25 Dec 2013 | Removal date: open ended
Still in force

Trade finance

On 25 December 2013 the Export-Import Bank (Eximbank) of Korea signed a loan agreement with Swedish Stena amounting to USD 340 million in ship financing. The loan consists of a USD 240 million Direct Loan and a USD 100 million Comprehensive Guarantee. The loan finances the Swedish company's purchase of two semi-submersible drilling rigs from Korean Samsung Heavy Industries at a value of USD 1.4 billion.
In this context the Bank stated: 'Stena retains a cancellation option for one of the two drill ships which is effective until the end of 2013, and we moved quickly to secure that portion of the contract for Samsung Heavy Industries with our customized financing.'
 
Ship financing
The Eximbank of Korea operates with various financial instruments, including Direct Loans and Comprehensive Guarantees, to promote its maritime sector. Direct Loans are provided to foreign buyers when financing their purchase of specific Korean maritime goods, whilst a Comprehensive Guarantee is provided for ship buyer's repayments. More information on the Bank's financial instruments can be found on the official website or the "Guide to the Import-Export Bank of Korea" publication.
 
According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million in the affected tariff lines in the year prior to the intervention. Thus, no affected trading partners have been identified.

The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

493 Ships
8905 Lightvessels, firefloats, dredgers, floating cranes and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms.
890510 Dredgers
890520 Floating or submersible drilling or production platforms

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