IBK Industrial Bank announced on the 17th that it has signed a 460 billion KRW 'Export Package Preferential Financing' business agreement with the Korea Trade Insurance Corporation. This agreement was made to support small and medium-sized export companies facing difficulties in financing due to the US-China trade conflict and the expansion of global uncertainties.
Through this agreement, IBK Industrial Bank will make a special contribution of 30 billion KRW in trade insurance funds to the Korea Trade Insurance Corporation to provide benefits such as reduced loan interest rates, preferential fees, and foreign exchange commission rates to export companies. The Korea Trade Insurance Corporation will support SMEs and mid-sized companies recommended by the bank by offering up to a 20% discount on guarantees and insurance premiums and doubling the maximum guarantee limit.
As a result, export companies are expected to reduce their financial burden by accessing higher loan limits at lower interest rates compared to general trade finance. The newly established Export Package Preferential Financing program is scheduled to be implemented in January next year.
Kim Sung-tae, the bank president, stated, “This agreement is a win-win financial project that supports small export companies with innovative and growth potential but insufficient collateral capacity by resolving financial difficulties and reducing financial costs.” He added, “I hope this will help export companies find new vitality in their business and make a strong leap forward.”
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