The Ministry of Trade, Industry and Energy will raise up to 1 trillion won ($898 million) to support the overseas expansion of energy-related public firms and their subcontractors, officials said Wednesday.
The ministry held a forum for plant business CEOs on Wednesday, under the chairmanship of Vice Minister Kim Jae-hong, and pledged to raise the nation’s total overseas plant order value to $70 billion, according to officials.
The country’s overseas plant construction orders rose steeply until 2010 but have been relative stagnant over the past few years, remaining in the $60 billion dollar range as of last year, according to the ministry.
The ministry will offer assistance to plant manufacturing companies and parts makers involved in overseas natural resource projects led by the Korea Electric Power Corporation, Korea Oil Corporation and Korea Gas Corporation.
It will also create a Global Plant Opportunity Fund, totaling between 500 million won and 1 trillion won, to back the corresponding firms’ bidding and material supply.
Upon the ministry’s blueprint, financial bodies such as the Export-Import Bank of Korea and K-Sure also offered cooperation.
EXIM Bank will up the ceiling of its plant finance to 21.1 trillion won this year, from 18.7 trillion won last year. It will also suggest lower banking loan interest for consortiums of conglomerates and small and medium-sized companies, giving extra benefits for joint efforts for mutual survival, officials said.
K-Sure, the nation’s trade insurance company, will increase its related budget by 9.4 percent to 16.3 trillion won and offer double the maximum loan limits for companies with outstanding business performance.
In addition to these financial plans, the MOTIE will also establish a comprehensive risk management system by the end of next month, in order to help local firms win large overseas plant construction bids, officials said.
By Bae Hyun-jung (email@example.com