ANNOUNCEMENT 12 May 2011In May 2011, the government of Republic of Korea announced a change in its trade finance instruments.
NUMBER OF INTERVENTIONS
"Solar & Wind Power Seminar for Expansion into Overseas Markets Co-hosted by Korea Eximbank and KNREA" 12 May 2011. Press release found at http://www.koreaexim.go.kr
"Korea Eximbank Strengthens Position as the Leading Institution for Green Export Finance (Part 2)." 2 May 2011. Press release found at http://www.koreaexim.go.kr
On 12 May 2011, in a press release describing a seminar organised by the Korean Eximbank for "domestic green companies," it was revealed that "Korea Eximbank plans to provide a total of KRW 40 trillion to the green growth industry by 2015 and assist 50 Korean green companies become leading exporters under the 'Action Plan for Leading the Green Export Industry.'"
The press releases goes on to note "To this end, the Bank is actively making efforts to identify and support pilot projects applying market-leading financial products such as direct investment, composite finance, independent PF, etc. in order to assist Korean companies secure business opportunities in overseas green markets."
Moreover, the Executive Director of the Korea Eximbank acknowledged that lessons learnt from supporting other Korean export industries would be applied to green products. Ki Sub Nam is reported to have said "The Bank provided various financial supports to assist domestic shipbuilding and plant companies grow into global corporations. Utilizing the knowledge gained from such experiences, the Bank will implement strategies to simultaneously support the entry of domestic green enterprises into offshore markets and develop domestic market foundation to assist the green sector become Korea's leading export industry."
Such measures will disadvantage foreign exporters of green products that compete with subsidised Korean firms. On6 July 2011 forty trillion Korean won was worth over 37 billion US dollars.
In an earlier (2 May 2011) press release the Korean Eximbank stated "the Bank is determined to nurture 50 global green industry exporters of which, 10 companies are hoped to become leading players in the green industry and 40 are hoped to become green Korean hidden champions, each with over USD 300 million in export volume."