South Korea's Eximbank Plans W200 Billion Fund for Export Support
The Export-Import Bank of Korea (Korea Eximbank) is set to establish a new fund worth up to 1 trillion won to support the overseas expansion of small and medium-sized export corporations, with the bank itself investing 200 billion won, while the remaining 800 billion won will be raised from private sources [1][2].
The fund, which is planned to be established in the first half of 2026, pending operator selection and approval by the Ministry of Economy and Finance, is aimed at promoting balanced national growth, particularly for small and medium-sized exporters facing economic challenges [1].
The fund's operation is subject to the selection of an asset manager. If selected, the asset manager may receive incentives for investing in corporations located outside the capital region and for fund investee corporations that relocate their headquarters to non-capital regions, as these incentives aim to encourage regional development and balanced economic growth [1].
The fund's primary focus is on small and medium-sized export corporations, helping them overcome domestic and international economic challenges. This initiative reflects Korea Eximbank's strategy to aid SMEs amid challenging economic conditions [1][2].
In addition to this fund, the bank also offers financial programs to support small and mid-sized enterprises, including potentially lowering interest rates for firms with low credit ratings or those impacted by foreign exchange fluctuations, alongside consulting services for environmental, social, and corporate governance (ESG) and new market growth strategies [3]. However, these programs are broader in scope and not limited to the new fund.
| Aspect | Details | |-----------------------|-----------------------------------------------------------| | Fund size | Target 1 trillion won total; 200 billion won from Korea Eximbank; 800 billion won from private sources | | Targeted companies | Small and medium-sized export corporations | | Investment goals | Support overseas expansion, balanced national growth | | Incentives offered | Revenue incentives for investing outside capital region or relocating headquarters outside capital region |
This new fund, if established, will provide a significant boost to small and medium-sized exporters in Korea, helping them expand their operations overseas and contributing to balanced national growth. The bank's commitment to regional development aligns with the new administration's policy direction, making this initiative an important step towards a more balanced and sustainable economic future for Korea.
The new fund, originating from the Export-Import Bank of Korea (Korea Eximbank), aims to boost the overseas expansion of small and medium-sized export corporations by providing a significant boost to their business. This fund, subject to the approval of the Ministry of Economy and Finance, is intended to promote balanced national growth within the broader business landscape of Korea.
