Kwangju Bank Signs MOU to Strengthen Export Competitiveness of Local SMEs and Mid-Sized Companies

Gwangju Bank signed a business agreement to strengthen the export competitiveness of local small and medium-sized enterprises, mid-sized companies, and small export merchants. Photo by Gwangju Bank

Gwangju Bank (President Ko Byungil) announced on the 20th that it has signed a "Business Agreement for Strengthening Export Competitiveness of Local SMEs, Mid-sized Enterprises, and Exporting Small Businesses."

This agreement was established through mutual cooperation among the Ministry of Trade, Industry and Energy, Korea Trade Insurance Corporation, and the four major regional banks including Gwangju Bank. Its aim is to support liquidity and export market diversification for local exporting companies, thereby enhancing the export competitiveness of SMEs and mid-sized enterprises and revitalizing the local economy.

The main points of the agreement are threefold: ▲ Introduction of the new "Comprehensive Foreign Exchange Purchase Guarantee by Bank" system to support the liquidity of exporting companies ▲ Preparation of support measures for fostering local export-oriented SMEs and mid-sized enterprises and diversifying export markets ▲ Enhancement of convenience in using trade insurance through the connection of electronic guarantee systems between banks and the corporation and strengthening mutual cooperation.

The newly introduced "Comprehensive Foreign Exchange Purchase Guarantee by Bank" system is designed to support export transactions without a letter of credit for SMEs and mid-sized exporting companies, providing foreign exchange purchase loans of up to $100,000 per company for a maximum period of 180 days. With this system, multiple exporters can access foreign exchange purchase loans secured by a single comprehensive guarantee certificate issued by each bank, without specifying individual exporting companies.

Ko Byungil, President of Gwangju Bank, stated, "It is very meaningful to sign such an important agreement to strengthen the competitiveness of exporting companies amid challenging domestic and international trade conditions," and added, "I hope this agreement will serve as an important stepping stone for strengthening the export competitiveness of local SMEs and mid-sized enterprises and revitalizing the regional economy."