Export-Import Bank of Korea has been expanding its social activities such as employment of the needy and supporting low-income households.
For the project, the state-run bank said Wednesday that its budget for social activities sector will increase by about 50 percent to 3 billion won ($2.63 million) in 2012 from 2 billion won in 2011.
“Some part of our interest income from extending loans to conglomerates will be allocated for contributing the underprivileged,” an Eximbank spokesman said.
In its recent activity, Kim Yong-hwan, chairman and president of the bank, and employees donated a bundle of clothes to Korea Goodwill.
The bank’s long-term plans to fulfill its social responsibilities include financial service contributions to assist immigrant brides, North Korean defectors and their children adjust to Korean society and find jobs.
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Export-Import Bank of chairman & CEO Kim Yong-hwan (left) shakes hands with a representative of Korea Goodwill after donating a bundle of clothes to the social activities center in southern Seoul on Dec. 12. (Korea Eximbank) |
Its social activities also include practical support for small- and mid-sized enterprises in a weak financial position as well as needy people.
On Dec. 1, Korea Eximbank initiated a comprehensive support program for global coexistence and development called the “Global PaSS Program” in order to provide financing for the stable growth of exporting SMEs entering overseas markets with large corporations or supplying goods and services to such companies.
The Global PaSS Program takes advantage of Korea Eximbank’s strength in supporting various overseas transactions regarding export, overseas investments, and aid and induces active participation by large corporations and related institutions.
PaSS is largely comprised of three programs: partnership in overseas business for SMEs (for SMEs entering overseas markets with large corporations), sustainable growth with SMEs (for SMEs with new growth technologies), and “Seed” (for people in need).
Korea Eximbank plans to utilize its global networks to provide overseas Korean SMEs with indirect support such as local currency loans with local factories as collateral and factoring through overseas partner banks.
Through this program, Korea Eximbank hopes to assist overseas Korean SMEs having difficulties in securing local loans due to their low credit ratings so that they may win long-term contracts with corporations.
There are many SMEs with advanced technologies in new growth sectors such as software development and knowledge-based services which have supply contracts with large corporations but find it difficult to secure sales channels or funding for operation due to their low credit and small size.
Recognizing such difficulties, Korea Eximbank will collaborate with the Korea Technology Credit Guarantee Fund and corporations to simplify project review processes and provide favorable interest rates and guarantee fees while assuming some credit risks.
Under the “Seed,” Korea Eximbank will increase support for marginalized sectors such as multicultural families by contributing 0.5 percent of the profit from activities related to overseas projects of large corporations last year. In doing so, the Bank aims to foster seeds of hope by such sectors.
Kim said the Global PaSS Program is significant in that it fosters such mutual growth between corporations and SMEs in the medium to long-term as a comprehensive program for shared growth, by assisting in the establishment of sales foundations such as conclusion of long-term procurement contracts.
“However, most of current SME support programs have focused more on short-term impacts achieved through low interest rates,” he said.
By Kim Yon-se (
kys@heraldcorp.com)
