ANNOUNCEMENT 08 Aug 2012In August 2012, the government of Republic of Korea announced a change in financial export support.
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea press release: Credit Lines Expanded to Support Korean Exports in Russia
Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?menuid=002001007&searchselect=all&searchword=Sberbank&pagesize=10&boardtypeid=284&boardid=16760
The Export-Import Bank of Korea press release: USD 2.5 Billion Korean-Russian Financial Cooperation Agreed to Develop Far East (2/2)
Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=9&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16935
Sberbank press release: On 21st September 2004, Sberbank and The Export-Import Bank of Korea signed the Interbank Export Loan Agreement for USD50m
Available at: http://www.sberbank.com/news-and-media/press-releases/article?newsID=6321-1-2&blockID=7®ionID=77&lang=en
Guide to the Export-Import Bank of Korean
Available at: https://www.koreaexim.go.kr/site/inc/file/fileDownload?dirname=/doc/002&filename=__English_guide_book.pdf&orinalname=__English_guide_book.pdf
ExImBank official website: https://www.koreaexim.go.kr/site/main/index002
On 8 August 2012 the Export-Import Bank (Eximbank) of Korea announced increasing the Russian state-owned bank Sberbank's. Interbank Export Loan ceiling by USD 500 million.
The Russian banks' credit line will increase from USD 200 million to USD 700 million. The credit line finances Korean companies or Russian firms purchasing Korean products.
In this context the ExImBank of Korea stated: 'The refinancing agreement will not set up a separate credit line, but will allow Russian importers of Korean products to obtain loans more quickly. Thus, the agreement is anticipated to promote greater exports of Korean automotives and machineries to Russia.'
This credit line agreement has since 2004 been extended several times. The ExImBank of Korea again increased Sberbank's. Interbank Export Loan ceiling on 14 November 2013 with USD 800 million to a total sum of USD 1.5 billion.
Untied Interbank Loans
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) 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.
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.