The Korea Herald

지나쌤

Eximbank to invest more despite global slowdown: CEO

By Kim Yon-se

Published : Jan. 12, 2012 - 20:52

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The Export-Import Bank of Korea has unveiled its policy to increase its investment in developing natural resources in overseas markets by 900 billion won ($789 million) this year.

The state-run bank will pour 2.8 trillion won into enterprises’ exploitation of overseas natural resources in 2012, its chairman and president Kim Yong-hwan told a news conference on Thursday.

The figure for the project is a sharp increase from the bank’s investment of 1.9 trillion won in 2011.

“European banks are expected to reduce their loans (or investment) amid the eurozone woes,” Kim said. “On the contrary, we will expand financial aid to large-scale projects in the Middle East and Southeast Asia.”
Kim Yong-hwan Kim Yong-hwan

The chairman commented on the case of Japan hesitating to invest in the shipbuilding industry, while Korea was active in investment and became the world’s No. 1.

Local conglomerates should not slash their investments in overseas projects despite the global economic slowdown, he said.

“For vitalization of mega-scale projects abroad, it is also necessary for Korea Eximbank to induce participation of commercial banks,” he said.

The Eximbank, as a state-owned bank, is considering offering a variety of benefits to major commercial banks actively investing in overseas projects.

In small- and mid-sized enterprises, he mentioned the bank’s comprehensive support program for global coexistence and development called the “Global PaSS Program.”

The Global PaSS Program takes advantage of Korea Eximbank’s strength in supporting overseas transactions regarding exports, 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).

The bank 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.

By Kim Yon-se
(kys@heraldcorp.com)