Korea Eximbank to extend W69tr in loans to firms in 2020

The Export-Import Bank of Korea said Monday that it will extend 69 trillion won ($59.5 billion) in loans to South Korean companies this year to help boost the economy.

The figures represent a 16 percent hike from 2019, according to the South Korean state-run policy lender.

Under the plan, the Export-Import Bank of Korea set aside 20 trillion won for companies that make industrial materials, parts and equipment in 2020, compared with 19 trillion won in 2019.

The move is the latest in a series of South Korea's efforts to boost competitiveness in industrial materials, parts and equipment and to reduce South Korea's heavy reliance on Japan in the key industrial sector.

In July, Japan imposed tighter regulations on exports to Seoul of three materials critical for the production of semiconductors and flexible displays. Japan has also removed South Korea from its list of trusted trading partners.

In December, Japan partially lifted its export control on one of the three products subject to the tightened screening.

South Korea views the Japanese moves as retaliation against 2018 South Korean Supreme Court rulings ordering Japanese firms to compensate South Korean victims of forced labor during Japan's 1910-45 colonial rule of the Korean Peninsula.

The Export-Import Bank of Korea also said it plans to extend 7.5 trillion won to help local companies take the lead in the growing electric vehicle battery business. (Yonhap)