Export-Import Bank to Provide Total 20 Trillion Won in Financial Support to Address Export Crisis

Large-Scale Support for Korean Companies Facing Crisis Due to Tariffs
KEXIM Announces KRW 20 Trillion Policy Fund to Respond to Export Challenges
Special Programs and Interest Rate Reductions to Aid SMEs and Mid-Sized Firms
Expanded Financial Support for Overseas Market Entry and Foreign Exchange Risk Management
Targeted Assistance for Crisis-Prone Industries and Supply Chain Stabilization

The Export-Import Bank of Korea (KEXIM) announced on the 11th that it will provide approximately KRW 20 trillion in policy funds to respond to the export crisis caused by changes in the new U.S. administration's trade policies.

First, KEXIM will establish a special crisis response program worth KRW 6.5 trillion to support Korean companies facing difficulties in exports and overseas expansion due to changes in export environments such as tariffs and intensified competition with major countries.

For small and medium-sized enterprises (SMEs) and mid-sized companies with low credit ratings and vulnerability to external environmental changes, KEXIM plans to reduce interest rates by up to 2 percentage points to alleviate management difficulties such as financial cost burdens caused by credit rating downgrades. The scale of comprehensive consulting services, which KEXIM supports at its own cost for trade response, new market development, and ESG (Environmental, Social, and Governance) response, will also be doubled (from KRW 5 billion to KRW 10 billion) to support smooth overseas market entry for Korean companies.

To support foreign exchange risk management for import companies struggling with high exchange rates, the loan currency conversion option, which was previously provided free of charge only for export-related loans, will be expanded to include import-related loans. The currency conversion option is a system that grants SMEs and mid-sized companies the right to convert the loan currency up to twice during the loan period free of charge.

In addition to the global oversupply, KEXIM will supply a total of KRW 10 trillion in liquidity to crisis-prone industries such as petrochemicals and steel, which are facing increased difficulties due to changes in the trade environment, and provide KRW 3 trillion in win-win financing to SMEs and mid-sized companies that have expanded overseas in partnership with large corporations or supply large corporations domestically.

KEXIM has also prepared support measures to help Korean companies overcome vulnerabilities to external environmental changes and secure core competitiveness. To support securing diverse and sufficient sales channels, about KRW 1 trillion in financing will be provided along with interest rate incentives to companies diversifying exports through new market development, and loan limits related to research and development (R&D) will be expanded to foster future new industries and the high value-added and eco-friendly transition of existing key industries.

While strengthening direct loan support for overseas production and sales subsidiaries of Korean companies expected to face difficulties in business activities due to high tariffs, KEXIM will also expand guarantees when loans are obtained in local currencies of business locations from commercial banks.

Along with this, KEXIM plans to mobilize all policy financial means, including not only existing loan methods but also investment finance essential for fostering new industries such as advanced strategic industries, and the supply chain stabilization fund worth KRW 10 trillion annually, which was newly established and operated last year, to help Korean companies overcome the crisis.

A KEXIM official said, "To overcome the complex economic and industrial crisis caused by changes in the global trade environment and intensified competition with major countries, timely and bold policy support is essential," adding, "We plan to actively support Korean companies so that they can effectively respond to external environmental changes such as the new trade order and industrial environment restructuring."