ANNOUNCEMENT 08 Aug 2013

On 8 August 2013, the Export-Import Bank of Korea (Korea Eximbank) announced the provision of financial support to three domestic firms which export intellectual property rights.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Export-Import Bank of Korea, New Korea Eximbank Program to Support Exporters of Intellectual Property Rights, 08 August 2013. Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=20&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16908

Inception date: 08 Aug 2013 | Removal date: open ended

Trade finance

On 8 August 2013, the Export-Import Bank of Korea (Korea Eximbank) announced the provision of financial support to three domestic firms which export intellectual property (IP) rights.

Under the terms of the agreement, Korea Eximbank would provide KRW 39 billion (USD 35.1 million) in financial support to facilitate IP development for companies receiving income from the sale of licensing of their IP to foreign companies.

The three companies to receive the financial support are apparel maker E-Land World, television show producer Pan Entertainment, and game developer Mgame. E-land World will receive KRW 25 billion to finance a clothing brand trademark, while Pan Entertainment will receive KRW 6 billion for copyright of one of its television series, and Mgame will receive KRW 8 billion for publication rights one of its games.

In this context, Korea Eximbank mentioned that the IP Export Credit programme will "serve the financial needs of the knowledge service industry, which is being underserved by commercial banks even though it forms the backbone of the creative industry and generates many new jobs. We will continue to take the lead in identifying and supporting service exporters to ensure the sustainable growth of IP-based exporters.”

IP Export Credit
Korea Eximbank provides loans under the program to financing intellectual property development by domestic companies deriving income from the sale or licensing of their IP to foreign companies. This program was launched in June 2013. Under the terms of the program, 100% of foreign sales by IP-based companies are identified as exports. As such, Korea Eximbank applies preferential credit terms and rates for such 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.

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