Eximbank special contribution, KODIT covenant guarantee supply
Year 1: 1.5 pp → Year 2: 1.0 pp → Year 3: 0.5 pp reduction
Measure eases financing costs for AI, new-growth and export SMEs
The Export-Import Bank of Korea and Korea Credit Guarantee Fund will jointly reduce guarantee fees by up to 3.0 percentage points over three years to ease financing costs for export-oriented and innovative small and medium-sized enterprises.
The two institutions announced Tuesday they had signed an MOU on Monday to promote productive inclusive finance.
Under the agreement, the Export-Import Bank of Korea will make a special contribution to Korea Credit Guarantee Fund, which will use the funds to supply covenant guarantees that lower guarantee fees for eligible companies. The structure covers the reduced portion of fees that companies would otherwise bear, with the contribution filling the gap.
Eligible companies include SMEs operating in new-growth industries such as AI, as well as export-focused SMEs.
The fee reduction is set at 1.5 percentage points in the first year, 1.0 percentage point in the second and 0.5 percentage point in the third, for a cumulative total of 3.0 percentage points over three years. The initiative aims to lower the cost of raising capital for high-growth-potential companies through coordination between policy finance institutions.
The collaboration is part of the Export-Import Bank of Korea's "productive inclusive finance" initiative announced last month. The two institutions plan to expand funding for innovative growth industries while improving financial access for export SMEs.
"Through our productive inclusive finance initiative, we will fulfill the Export-Import Bank of Korea's role in building an ecosystem that supports domestic small and medium-sized venture companies from startup through growth," Export-Import Bank of Korea President Hwang Ki-yeon said. "Building on our close partnership with Korea Credit Guarantee Fund, we will continue to provide comprehensive policy finance support to lower the financial barriers facing export SMEs and strengthen their crisis resilience and future competitiveness."
Korea Credit Guarantee Fund Chairman Kang Seung-jun said he hoped the agreement would offer practical help to innovative growth companies struggling to secure funding in a timely manner during a period of high interest rates. "Korea Credit Guarantee Fund will continue to develop tailored policy finance support measures to sustain the expansion of the nation's growth engines and the development of export companies," he added.
Meanwhile, financial institutions' contributions to Korea Credit Guarantee Fund are projected to reach 1.53 trillion won ($1.16 billion) next year, up 124.2 billion won from this year. Private contributions — made by financial companies under separate agreements with Korea Credit Guarantee Fund — are expected to reach 154.5 billion won, a 49.9 percent increase, reflecting growing demand for guarantees as productive finance expands.
rim@heraldcorp.com
