ANNOUNCEMENT 16 Jul 2010In July 2010, the government of Republic of Korea announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
"Korea Eximbank and SMBC Sign Cooperation Agreement to Co-finance Large-scale Plant Projects," Available at http://www.koreaexim.go.kr/en2/01_exim/04_bank/01_view.jsp?nCP=1&nRegNo=455&cUseYN=&nSSecNo=9&sSKeyword=
On 16 July 2010 the Export-Bank of Korea and the Sumitomo Mitsui Banking Corporation (SMBC) signed an accord to provide finance for large overseas projects such as "ship finance, export finance, foreign investments; development of natural resources; and sharing of information regarding projects."
One purpose of this scheme was revealed by the following statement by an official at the Export-Import Bank, quoted directly in the press release as follows:
A representative of Korea Eximbank stated, "Korean and Japanese companies are increasingly forming consortiums in the plant market. Co-financing by Korea Eximbank and SMBC, facilitated by this agreement, will increase competitiveness of Korean-Japanese consortiums to win contracts." '