BNK Gyeongnam Bank Signs Business Agreement to Strengthen Order Competitiveness of Mid-sized Shipbuilders

BNK Gyeongnam Bank has actively participated in an agreement to support mid-sized shipbuilders in order to revitalize the local economy and, furthermore, the South Korean economy.

On the 17th, BNK Gyeongnam Bank signed a "Business Agreement to Strengthen the Order Competitiveness of Mid-sized Shipbuilders" with Korea Trade Insurance Corporation, commercial and regional banks, and others.

The signing ceremony, held at the Plaza Hotel in Seoul, was attended by BNK Gyeongnam Bank President Ye Kyungtak, Financial Services Commission Chairman Kim Joo-hyun, Minister of Trade, Industry and Energy Ahn Deokgeun, presidents of commercial and regional banks, and representatives of shipbuilding companies.

BNK Gyeongnam Bank signed a business agreement on the 17th with the Korea Trade Insurance Corporation, commercial banks, and regional banks to strengthen the order competitiveness of medium-sized shipbuilders.
[Image provided by BNK Gyeongnam Bank]

According to the agreement, the government, institutions, and banks will cooperate to strengthen the order competitiveness of mid-sized shipbuilders, including providing refund guarantees for advance payments on ships.

In particular, banks including BNK Gyeongnam Bank will issue refund guarantees for advance payments for mid-sized shipbuilders based on the special guarantees provided by Korea Trade Insurance Corporation.

Korea Trade Insurance Corporation will provide these special guarantees for mid-sized shipbuilders at a coverage rate of 95%, based on government contributions.

Through this agreement, BNK Gyeongnam Bank plans to issue a refund guarantee (RG) worth 30 million dollars to support the stable overseas ship orders of the local mid-sized shipbuilder K Shipbuilding Co., Ltd.

Previously, in April last year, BNK Gyeongnam Bank made various efforts to actively participate in the government's "Policy to Expand Financial Support for the Shipbuilding Industry."

In particular, in July last year, BNK Gyeongnam Bank was the first among regional banks to respond to government policy by issuing a refund guarantee (RG) worth 38 million dollars to the local mid-sized shipbuilder K Shipbuilding Co., Ltd.

Additionally, BNK Gyeongnam Bank provided 30 billion won in operating funds to the major shipbuilder Samsung Heavy Industries.

President Ye Kyungtak stated, "With this agreement as an opportunity, we plan to actively enhance the competitiveness of export companies leading future growth in key local industries such as shipbuilding and defense. BNK Gyeongnam Bank will continue to sincerely participate in government policies, faithfully fulfill its role as a regional bank, increase the interdependence of upstream and downstream industries, and do its utmost to support regional economic development and export revitalization."