The state-run policy bank will increase its support in financing overseas projects such as energy plants, highways, railroads, resources and other areas of construction to help Korean companies win deals and create jobs.
This move comes as Korea faces tough competition from Japan and China in the infrastructure sector, and Kim said, “Eximbank’s project financing is to back Korean companies, not to lose bids against their counterparts abroad.”
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| Kim Yong-hwan |
He said Japan will emerge as a prominent competitor especially this year as its companies seek growth overseas on a weak yen amid the economic slowdown at home.
Eximbank will provide project financing worth 21 trillion won ($19 billion) this year, up from 19 trillion won last year.
Winning overseas projects will boost employment, as well as exports, Kim told the press.
Eximbank will not only participate as a financial provider, but will invest in equities of infrastructure projects with private companies to further guarantee and secure deals.
Its financial advisory services will expand this year for Korean companies seeking to secure several infrastructure deals.
However, Kim emphasized that Eximbank is not eyeing investment banking, which could overlap with other local financial firms.
It also plans to boost economic assistance to developing countries in building infrastructure through the Economic Development Cooperation Fund worth 1.4 trillion won this year, up from 1.2 trillion won in 2012.
The policy bank will extend SME loans worth 22.5 trillion won, accounting for 45 percent of the 50 trillion won it has set aside for loans in total.
Kim said it hopes “this will help small businesses grow into mid-tier companies.”
It will also assist in financing SME exports of entertainment and cultural content, and biotech and pharmaceutical products.
Eximbank plans to raise some $10 billion through bond issuances overseas.
By Park Hyong-ki (hkp@heraldcorp.com)
