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: 01 Jun 2011 | Removal date: open ended
Still in force

Financial assistance in foreign market

The Korean Eximbank's financial support for the coal-fired power plant project in Viet Nam has a total value of USD 620 million in project financing. The Korean company POSCO Power will participate in the project with a 30% equity investment and the operation and maintenance of the plant alongside the Korean company Doosan Heavy Industries & Construction as the EPC (Engineering, Procurement, Construction) contractor. An EPC contract is a form of export contract covering the design and construction of the plant as well as the supply of equipment. 

In this context, the Bank stated: "Korea Eximbank has played a key role in the project by actively expressing financial support for the project from the early stages, organizing lenders’ group including an international commercial bank, and leading financial negotiations. Originally, project developer AES had planned to entrust plant construction to a Chinese company but switched to Korean companies after the Bank actively expressed financial support for the project."

Project Finance
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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

541 General construction services of buildings
542 General construction services of civil engineering works

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