ANNOUNCEMENT 23 Jun 2014In June 2014, the government of Republic of Korea announced new support for the overseas expansion of domestic firms.
NUMBER OF INTERVENTIONS
Press release: Korea Eximbank to Finance Chilean Power Plant with USD 380 Million. Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=2&menuid=002001007&pagesize=10&boardtypeid=284&boardid=17001
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
On 23 June 2014 the Export-Import Bank (Eximbank) of Korea granted USD 380 million (a USD 210 million loan and a USD 170 million guarantee) in project financing to the Chile Kelar Gas-Fired Combined Cycle Power Plant Project. The financing falls under the Eximbank's Investment-development project type.
Funding will support the participation of Korean companies. As such Korea Southern Power, Samsung C&T and Samsung Engineering will be involved in the equity investment, the construction or the operations of the plant. The plant is scheduled to be completed in 2016 and estimated to cost approximately USD 600 million.
In this context the Bank stated 'Korea Eximbank is credited to have decisively assisted the entry of Korean firms into the Latin American power market by providing competitive financing and information on how to win contracts such as power purchase agreements.
Investment-development type projects
The Eximbank of Korea supports "investment-development type projects" with direct loans, guarantees, and/or equity investment. Korean companies must participate before such projects are eligible for financial support by the Bank. 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.