Eximbank to bolster ties with German counterpart

The Export-Import Bank of Korea, or Eximbank, said Thursday it signed a memorandum of understanding with its German counterpart, KfW IPEX-Bank, pledging to cooperate in financing projects related to strategic technologies and supply chain networks.

KfW IPEX-Bank is a specialist bank for export and project financing owned by Germany's main development bank Kreditanstalt fur Wiederaufbau, which translates as Credit Institute for Reconstruction.

Eximbank Chairman Yoon Hee-sung met with Velibor Marjanovics, a member of the management board at KfW IPEX-Bank, to sign the agreement at the German lender’s office in Frankfurt on Wednesday.

The agreement entails that the two policy lenders will cooperate in finding and financing projects in advanced technology, decarbonization and core supply chains.

The cooperation will allow Korean companies to secure financing for their projects related to the electronic vehicle and secondary battery supply chains, advanced technology such as hydrogen and ammonia plants, and renewable energy, hydrogen and eco-friendly vessels, Eximbank said.

"Eximbank has fostered the foundation for cooperation with KfW IPEX which supports decarbonization efforts, construction and investment of infrastructure in Europe," Yoon said after signing the contract.

"Using the global network of Eximbank, we will help Korea and Germany nurture core technologies and respond to supply chain (disruptions), while supporting Korean companies secure competitiveness in new industries.”

Marjanovics echoed the view, promising further cooperation.

"Eximbank is a trusted policy lender that many financial institutions in Germany and Europe hope to cooperate with," Marjanovics said.

"(The cooperation) will boost strategic technology projects related to the core mineral supply chain and renewable, hydrogen (energy) pursued by Korean, German and European companies,” he said.