ANNOUNCEMENT 26 Apr 2015In April 2015, the government of Republic of Korea announced a change in financial export support.
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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
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:
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.