Eximbank vows more support for firms entering emerging markets

Export-Import Bank of Korea will step up support for companies entering emerging markets in the Middle East, Africa and Central and South America, the bank’s chairman and president Kim Yong-hwan said Friday.

“In order to secure future growth engines for Korea, we will expand support for businesses advancing into emerging markets with high growth potential,” Kim said in a speech during an event to celebrate the bank’s 36th anniversary of its foundation.

The state-controlled bank plans to bolster public-private partnerships by linking more export financing with the Economic Development Cooperation Fund, which provides long-term, low-interest loans for developing nations.

It will also seek to revise rules to enhance financial competitiveness as it is difficult to introduce new policies or financial techniques under current regulations on export-import finance or resource development support.

“(Korea Eximbank) will push for revision of the law in consultation with the government to shift from a positive system, which lists the things that we can do, to a negative system, which lists what we are not allowed to do,” Kim said.

Kim also said Korea Eximbank will aim to provide funds for small and medium-sized exporters in a timely manner, continue to increase capital, make greater use of private capital and preemptively manage risks.

Korea Eximbank spent some 67.3 trillion won ($58.3 billion) in investment and trade finance last year, about 530 times more than the 126.2 billion won it spent when it was established in 1976.

By Kim So-hyun (sophie@heraldcorp.com)