Export-Import Bank: "The First Year of Creating K-New Deal Global Achievements... 80 Trillion Won Support Over 10 Years"

- Export-Import Bank Long-Term Strategic Report Presentation
- ▲Hydrogen Energy, ▲Wind & Solar Power, ▲Secondary Batteries & ESS, ▲Future Mobility, ▲5G & Next-Generation Semiconductors, ▲Pharmaceuticals & Healthcare, ▲Digital & Content: 7 Key Support Areas
- 80 Trillion KRW Funding Supply Over the Next 10 Years (2021-2030)

[Asia Economy Reporter Park Sun-mi] The Export-Import Bank of Korea (KEXIM) plans to make this year the first year of achieving global results for the K-New Deal and intends to support 80 trillion won over the next 10 years.

On the 21st, KEXIM announced through its mid- to long-term strategic report for achieving global results of the K-New Deal that it will supply 80 trillion won over the next 10 years (2021-2030), focusing on seven key support areas selected by KEXIM: ▲hydrogen energy, ▲wind and solar power, ▲secondary batteries and ESS, ▲future mobility, ▲5G and next-generation semiconductors, ▲pharmaceuticals and healthcare, and ▲digital and content.

From this year until 2025, 30 trillion won will be supplied to further strengthen the global competitiveness of export-leading items such as secondary batteries and 5G. From 2026 to 2030, hydrogen energy and other major K-New Deal sectors will enter a full growth phase, and 50 trillion won will be supplied to support South Korea’s rise as a leading country in green and digital New Deal sectors.

KEXIM plans to actively utilize its existing corporate network to proactively identify and support plans and projects for the New Deal transformation of traditional industries to promote the globalization of the K-New Deal. Additionally, it will establish the 'K-New Deal Global Promotion Program' to activate support for New Deal key sectors and small and medium-sized enterprises (SMEs) and mid-sized companies, and establish a customized financial support system covering all export stages from research and development (R&D) and mergers and acquisitions (M&A) to facility investment and production. KEXIM will also develop tailored support strategies for the seven key K-New Deal industries, improve the screening process, and strengthen screening capabilities for new technologies by activating networks with external specialized institutions by industry (outsourcing if necessary).

KEXIM’s K-New Deal support strategy aims to support government policies targeting a leading transformation of the Korean economy and securing a global market lead. The share of New Deal industries in KEXIM’s loans will increase from 9% this year to 21% by 2030.

Meanwhile, the funding for achieving global results of the K-New Deal is also linked to KEXIM’s three core business plans for 2021.

KEXIM has set one of its three core business plans this year as laying the groundwork to reclaim $600 billion in exports, planning to supply a total of 72.1 trillion won in financing. To this end, it will supply 5 trillion won for the globalization of K-New Deal industries, 23 trillion won to support the resurgence of order-winning industries, and 29 trillion won to strengthen the global export competitiveness of SMEs and mid-sized companies.

KEXIM will also actively pursue digital innovation. It plans to innovate the existing face-to-face financial support platform by building a non-face-to-face online platform, introduce a data-driven automatic screening system within the year for the first time in policy finance, and secure a budget of about 70 billion won to begin construction of a data center.

Through this, the accessibility of KEXIM’s financial services for exporting SMEs is expected to improve dramatically, and screening based on digital and data will enhance KEXIM’s operational efficiency and make credit screening more precise.

ESG (environmental, social, and governance) management is also one of KEXIM’s three core business plans. KEXIM plans to strengthen its eco-friendly loan portfolio by expanding green New Deal financing, give preferential treatment to ESG companies when providing loans, and expand ESG bond issuance. It also stated that it will continue to inspect and improve anti-corruption and integrity management infrastructure, strengthening social responsibility and internal controls.

President Bang Moon-kyu said, “KEXIM’s three core tasks this year were planned to actively respond to rapidly changing domestic and international environments and to actively support government policies such as the globalization of the K-New Deal.” He added, “We will do our best to achieve results in export expansion, digital transformation of KEXIM, and the spread of ESG management.”