Funding Plant, Service Exports
Eximbank plays a crucial role in supporting Korean firms with loans and guarantees for overseas projects
The Export-Import Bank of Korea (Eximbank) is an official export credit agency providing comprehensive export credit and guarantee programs to support Korean enterprises conducting overseas business.
Since its launch in 1976, the bank has actively supported Korea's export-led economy and facilitated economic cooperation with foreign countries.
The bank's primary services include export loans, trade finance and guarantee programs structured to meet the needs of clients in a direct effort to both complement and strengthen the clients'competitiveness in global markets. The bank also provides overseas credit, natural resources development credit, import credit and information services related to business opportunities abroad.
Furthermore, the bank is responsible for the operation of two government funds: the Economic Development Cooperation Fund (EDCF), a Korean official development assistance program, and the Inter-Korean Cooperation Fund (IKCF), an economic cooperation program with North Korea.
The bank, in fact, strives to become "Your Partner for Global Business,"as reflected in its vision by continuously fostering innovation and development through its operations.
The bank's total assets amounted to 23.64 trillion won, total equity of 4.94 trillion won and 3.31 billion won in paid-in capital with an 11 percent BIS ratio as of the end of 2007.
Its international credit ratings are ! by S&P, Aa3 by Moody's and A+ by Fitch.
As of the end of 2007, the bank's loans amounted to $24.46 billion, up from $21.19 billion at year end 2006. Guarantees issued totaled $30.04 billion, compared $24.10 billion at the end of 2006, bringing the total commitment to $54.50 billion compared to $45.29 billion in the same period last year.
The bank's total assets amounted to $25.20 billion at the end of 2007 up from $18.77 billion at the end of 2006.
Earlier in the year, the bank announced its commitment to provide funds totaling $800 million to the Yemen LNG Project and Saudi Ma'den Phosphate project, each amounting to $400 million.
The bank made the commitment in the hope that it will help secure LNG and further promote Korean companies'participation in natural resources projects and plant projects in the Middle East.
The bank said the Yemen LNG Project is Korea's flagship project in the development of natural resources overseas. A Korean consortium, with Korea Gas Corp. as a participant, and global energy majors such as Total of France and Hunt of the United States will collaborate to explore the Marib gas field in Yemen.
Korea Eximbank will provide $400 million to the project through the financial facility. The package is composed of a direct loan of $240 million and a financial guarantee of $160 million.
An official from Korea Eximbank said Korea will be able to secure LNG supply in a timely manner with this project. He also added that the project will contribute to increased opportunities for Korean companies to participate in the high-value-added LNG plant construction projects.
The Saudi Ma'den Project is led by two of Saudi Arabia's leading state companies: Ma'den, a mining company and SABAC, a petrochemical company. The $5.5 billion plant project is an ambitious, large-scale project aiming to create a fertilizer production plant that produces 3.5 billion tons of chemical fertilizers per year by 2011, in line with the Saudi government's strategy to promote non-oil industries.
The Korean firms participating in the project include Samsung Engineering and Hanwha Engineering and Construction, who will export ammonia production facilities and power & desalination plants. nw
Chairman & CEO Chin Dong-soo of Korea Export-Import Bank.