ANNOUNCEMENT 25 Nov 2013

In November 2013, the government of Republic of Korea announced a change in its trade finance instruments.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



The Export-Import Bank of Korea press release: Public and Private-Sector Banks in Korea and Beyond Team Up to Boost Korean Ship Exports
Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=9&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16939

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: 25 Nov 2013 | Removal date: open ended
Still in force

Trade finance

On 25 November 2013 the Export-Import Bank (Eximbank) of Korea announced signing a loan agreement with Canadian Teekay amounting to USD 307 million. The loan consists of a USD 177 million Direct Loan and a USD 130 million Comprehensive Guarantee.

The loan finances the Canadian company's purchase from Korean Samsung Heavy. Industries. In this context Teekay signed a USD 757 million Floating Production Storage and Offloading unit exporting deal with the Korean company.

In this context the Bank stated: 'The Bank plans to expand its ship finance activities in order to help Korean shipbuilders win more contracts for high value-added ships.'
 
Ship financing
The Eximbank of Korea operates with various financial instruments, including Direct Loans and Comprehensive Guarantees, to promote its maritime sector. Direct Loans are provided to foreign buyers when financing their purchase of specific Korean maritime goods, whilst a Comprehensive Guarantee is provided for ship buyer's repayments. 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.
 
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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