Hana Bank Launches 'Export e-Purchase Loan', First in Banking Sector

[Asia Economy Reporter Kim Min-young] Hana Bank has become the first bank in the industry to launch a loan product utilizing the export credit guarantee (supply chain) of the Korea Trade Insurance Corporation.

Hana Bank announced on the 18th that it has launched the 'Export e-Purchase Loan.'

The Export e-Purchase Loan is a B2B settlement product for direct and indirect export companies. Indirect export companies supplying raw and subsidiary materials for export to export companies previously faced a considerable period before the accounts receivable could be securitized after delivery, but with this product, they can convert receivables into cash earlier.

This product was launched through a business agreement between Hana Bank and the Korea Trade Insurance Corporation, utilizing export credit guarantees. The export credit guarantee is a support guarantee system that helps indirect export companies immediately convert accounts receivable into cash without debt burden, based on purchase confirmations issued between export companies and indirect export companies, with support planned at a scale of 300 billion KRW.

In particular, direct and indirect export companies using this guarantee system can apply a zero VAT rate (0% tax rate) on raw and subsidiary materials for export, enhancing the external price competitiveness of export goods, and can also utilize additional guarantee support from the Korea Trade Insurance Corporation.

Han Jun-sung, Vice President of Hana Bank's Future Finance Group, said, "The Export e-Purchase Loan, launched solely for the first time in the banking sector, was planned to provide practical help to export companies and proactively lead the growth of the domestic export industry," adding, "We are preparing to file a patent and will solidify our position as a recognized foreign exchange leading bank."