ANNOUNCEMENT 26 Apr 2015

In April 2015, the government of Republic of Korea announced a change in financial export support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



The Export-Import Bank of Korea press release: Korea Eximbank Signs MOUs with Brazil's Iron Ore Giant and Banks
Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?menuid=002001007&pagesize=10&boardtypeid=284&boardid=17017

Guide to the Export-Import Bank of Korean
Available at: https://www.koreaexim.go.kr/site/inc/file/fileDownload?dirname=/doc/002&...
ExImBank official website: https://www.koreaexim.go.kr/site/main/index002


Inception date: 26 Apr 2015 | Removal date: open ended
Still in force

Trade finance

On 26 April 2015 the Export-Import Bank (Eximbank) of Korea announced signing several Interbank Export Credit Cooperation Agreements and MoUs with commercial banks in Central and South America amounting to a total credit line of USD 5 billion. These agreements are intended to support Korean exports in Central and South American markets.
 
The agreements signed by the Korean Eximbank are as follows:

  • Firstly, the Bank signed a Interbank Export Credit Cooperation Agreement amounting to a USD 2 billion credit line with Banco de Gredito del Peru;
  • Secondly, the Bank signed a interbank Export Credit Cooperation MOU totalling a USD 1 billion credit line with Banco Santander Chile;
  • Thirdly, the Bank signed a MoU with Brazilian National Development Bank (BNDES) to co-finance Korean or Brazilian company activities among others;
  • Fourthly, the Bank signed a Interbank Export Credit Cooperation Agreement with Brazilian Banco do Brasil amounting to a USD 1 billion credit line;
  • Fifthly, a Interbank Export Credit Cooperation Agreement was signed with Brazilian Itau Uniban totalling a USD 500 million credit line;
  • Lastly, the Bank signed a Interbank Export Credit Cooperation Agreement worth a USD 500 million credit line with Brazilien Banco Santander Brazil

 
To this end the Eximbank's Chairman stated: 'As the financial support by the Bank can cover the entire region of Central and South America now, we will provide the best financial support to Korean companies advancing into the market so that they can concentrate on their export activities.'
 
Interbank Export Loans
As noted the ExImBank of Korea extends credit to foreign banks for the purpose of financing local Korean-owned companies (holding at least 10% capital stock or equity shares) and/or foreign companies purchasing Korean goods or services. 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.
In this context the Bank stated: 'Interbank Export Credit is a financing technique in which after an agreement on credit line is signed between Korea Eximbank and a foreign local bank, the local bank provides financing, received from Korea Eximbank in favorable terms and conditions, to its local companies which have business relationship with Korean companies.'
 
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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AFFECTED PRODUCTS

 
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