Export-Import Bank Signs $50 Million On-Lending Finance Support Agreement with Kazakhstan Development Bank

The Export-Import Bank of Korea (KEXIM) announced on the 13th that it has launched on-lending financial support to promote economic diplomacy in the Central Asia region.

According to KEXIM, Yoon Hee-sung, the bank president accompanying President Yoon Suk-yeol’s state visit economic delegation to Central Asia, met with Marat Yelibayev, president of Kazakhstan’s state-owned Development Bank of Kazakhstan (DBK), at the 2024 Korea-Kazakhstan Business Forum held on the 12th (local time) and signed a memorandum of understanding (MOU) for on-lending financial support worth 50 million USD.

On-lending finance refers to an indirect financial product where KEXIM lends funds to a local overseas bank, which then provides loans to local companies that have business relations with Korean companies. Once an on-lending finance agreement is signed, it is expected to boost exports of Korean products to the country and increase trade volume between the two countries, including the import of key minerals.

Kazakhstan is the 9th largest country in the world by territory, rich in energy and mineral resources such as crude oil and natural gas. In particular, due to alternative trade utilization and supply chain changes caused by Western sanctions against Russia, trade volume with South Korea is increasing.

As a follow-up to this MOU, if a new on-lending finance limit of 50 million USD is established between KEXIM and DBK, it is expected that financial support will be possible for major projects in Kazakhstan involving Korean companies.

After signing the MOU, President Yoon said, “Through on-lending finance, we will provide timely financial support necessary for various export activities of our companies and strengthen efforts to penetrate the Central Asian market.”