ANNOUNCEMENT 04 Apr 2014In April 2014, the government of Republic of Korea announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
The Export- Import Bank of Korea press release: Korea Eximbank to Provide USD 707 Million Financing to Turkmenistan Petrochemical Project. Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=5&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16979
Korean ExImBank information on Export Credit and under export related loans:
On 4 April 2014 the Export-Import Bank (ExImBank) of Korea provided USD 707 million (a USD 492 million Direct Loan and a USD 215 million Guarantee) to a petrochemical facilities project in Turkmenistan. The project is developed by turkmenistani Turkmengas. The project will, among others, be further financed by seven Korean commercial banks where the ExImBank will provide a USD 215 million guarantee. The Korean companies LG International, Hyundai Engineering and Hyundai Engineering & Construction are to jointly participate in the project.
In this context the Bank stated 'A contributing factor in the awarding of the project to Korean companies was Korea Eximbank and K-sure's bold move to venture into non-traditional project markets such as Turkmenistan.' Notably the Korean companies also had obtained tenders in the country prior to this approval.
The ExImBank of Korea provides various export loans and guarantees on favorable terms to support specific Korean companies' business activities abroad. The terms and conditions vary depending on the loan or guarantees' purpose. More information on such loans and guarantees can be found on the Bank's website under Official Export Credit as well as under export related loans / guarantees.
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.
According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million on the affected tariff lines in the year prior to the intervention. Thus, no affected trading partners have been identified.