Korea Eximbank Expands Financial Support for LH and Overseas Industrial Complexes... "A Way Out of the Order Drought"

Activation of Overseas SOC Projects Including Smart Cities
"Expecting Expansion of Domestic Companies' Project Participation"

Lee In-ho, President of Korea Trade Insurance Corporation. (Photo by Korea Trade Insurance Corporation)

[Asia Economy Reporter Moon Chaeseok] Korea Trade Insurance Corporation (K-SURE) announced that it will sign a 'Business Agreement for Strengthening Cooperation and Support for Overseas Projects' with Korea Land and Housing Corporation (LH) at its headquarters in Jongno-gu, Seoul, starting at 2:30 PM on the 24th.

The agreement was made to activate LH's overseas investment development projects through K-SURE's financial support and to increase project order opportunities for domestic companies entering overseas markets together with LH.

According to the agreement, K-SURE will expand financial support for overseas investment development projects. Based on this, LH will promote overseas projects such as smart city construction and industrial complex development abroad.

Additionally, K-SURE will provide preferential support for insurance limits and premiums necessary for investment development projects, such as 'Overseas Investment Insurance' (mitigating risks of overseas investment losses) and 'Overseas Project Finance Insurance' (supporting low-interest long-term financing), to LH and domestic companies residing in overseas industrial complexes developed by LH.

LH and companies residing in overseas industrial complexes will be able to reduce investment loss risks and financing costs related to overseas projects by utilizing trade insurance. Thanks to this, K-SURE expects that overseas project promotion will gain momentum in the future.

The synergy created by K-SURE's financial support capabilities, including overseas risk coverage and fund supply, and LH's diverse project promotion experience and know-how is expected to activate overseas investment development projects and expand domestic companies' orders.

K-SURE and LH are discussing mutual cooperation on overseas investment development projects such as new city development in Vietnam and industrial complex development in Russia. To strengthen cooperation in discovering new promising projects, the two organizations will share the status of their major projects and global collaboration networks to establish multilateral cooperative relationships.

Lee In-ho, President of K-SURE, said, "Due to the global economic downturn caused by the spread of COVID-19 and the decline in international oil prices, the overseas order market is shrinking, making it a time when a new breakthrough is needed to reverse the situation."

He added, "We will spare no effort in supporting trade insurance so that various overseas project financial support methods, experience, and know-how can lead to the activation of overseas investment development projects and the expansion of orders for our companies."

Exterior view of the Korea Trade Insurance Corporation headquarters. (Photo by Korea Trade Insurance Corporation)