AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The Korean Eximbank's financial support to the Korean company SK Group in Singapore has a total value of USD 620 million in project financing. The funds will support the Korean company's Singaporean branch to participating in a project which will construct and operate a petrochemical plant in Singapore in collaboration with EDBI Singapore. The Korean company will in this context participate in the entire process including " the EPC contract, capital injection, supply of raw materials, product purchase, and plant operation after the completion of construction".
In this context, a Korean Eximbank official stated: "The Bank plans to actively provide competitive medium- and long-term financing and arrange international commercial financing as stable financing is crucial for Korean companies to implement high-value overseas investment development projects."
Project Financing is provided to certain foreign large-scale projects. Repayments of such loans include preferential terms such as repayments mainly being made from the project’s own cash flow generation. Project financing loans are solely eligible for projects which include Korean companies participating as an exporter, sponsor or as an operations and maintenance contractor.
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.
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