Yoon Hee-sung, president of Eximbank presides an economic emergency task force in Seoul, Thursday.(Eximbank)
The Export-Import Bank of Korea said Thursday its executives, including its new CEO and heads of relevant departments, discussed credit support plans to help businesses tide over inflation, high interest rates and the weakening Korean won.
Based on judgment that the unstable global supply of raw materials led to high prices, the “economic emergency task force” of Eximbank decided to increase the credit support for tackling the global supply chain crisis from the current 15 trillion won to 20 trillion won.
The additional 5 trillion won will be used to financially assist small- and medium-sized enterprises struggling with supply chain disruptions and to help them secure raw materials, the state-funded bank said.
Loans to SMEs accounted for 50.2 percent of total loans extended by Eximbank last year, and the bank plans to keep the rate above 50 percent.
To deal with a foreign currency liquidity shortage due to the declining value of the Korean won, Eximbank plans to secure foreign currency worth $20 billion by the end of this year.
The bank said it will provide sufficient credit for future growth engines such as batteries, and industries where financial assistance in foreign currency is crucial such as ships, defense, as well as for helping stabilize the supply chains.
For instance, Eximbank extended $500 million in loans for a new plant SK On is building in Hungary to produce batteries for electric vehicles.
By Kim So-hyun (email@example.com