Mercury, Supply Chain Stabilization Fund Launched... "Strengthening Global Risk Response System"

On the 5th, the Export-Import Bank of Korea (KEXIM) announced that it held the launch ceremony of the "Supply Chain Stabilization Fund" at its Yeouido headquarters. The fund was established within KEXIM to systematically support key projects related to stabilizing South Korea's supply chain, in accordance with the enactment of the "Basic Act on Supply Chain Stabilization Support for Economic Security."

The fund plans to focus support on projects contributing to supply chain stabilization, centered on four critical sectors from an economic security perspective: ▲advanced strategic industries ▲resource security ▲essential goods for the national economy and industry ▲logistics. It is scheduled to raise resources up to 5 trillion KRW in the second half of the year through the issuance of government-guaranteed fund bonds, and it is expected that competitive financing through government guarantees will enable favorable financial conditions for Korean companies' supply chain stabilization projects.

KEXIM plans to establish a customized financial support system for the fund, providing systematic and detailed financial assistance that responds to the diverse financial needs of companies at each stage of supply chain stabilization projects.

By introducing fund-type loan products, support will be provided for up to 10 years depending on the type of project, such as ▲securing, introducing, and supplying core materials ▲domestic and overseas facility investment and operation ▲technology introduction and commercialization. Additionally, preferential interest rates will be applied to economic security item stabilization projects led by "stabilization leading companies" selected by the government and projects undertaken by small and medium-sized enterprises, thereby enhancing the effectiveness of support.

President Yoon Hee-sung stated in his inaugural speech, "The fund is a supply chain-specialized policy finance established as part of a whole-of-government response system to global supply chain risks," and added, "Through customized loan products tailored to the financial needs at each stage of the supply chain value chain, we will actively support our companies to withstand and overcome supply chain crises."

Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, also said in his congratulatory remarks, "The fund will be deployed where companies alone find it difficult to cope, and will be used for domestic production of economic security items, diversification of imports, and technological self-reliance," adding, "The government will firmly organize the supply chain policy front and inject dynamism into every corner of the economic field to become a strong supporter of our companies."

Meanwhile, at the launch ceremony, the appointment ceremony for the members of the Fund Management Deliberation Committee, the decision-making body that reviews the fund’s operational plans and financial support matters, was also held.