Korea’s export-import bank launches inclusive finance program
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Korea’s Export-Import Bank (KEXIM) initiated a “Productive and Inclusive Finance” program to support companies as they start, grow, and recover.
KEXIM will offer “technology special case loans” to venture companies with strong technology but limited sales, providing up to 5 billion Korean won (approximately $3.7 million USD) based on technical evaluations instead of credit scores.
Companies demonstrating export performance and needing immediate funds can receive up to 500 million won through “fast-track special loans” assessed by financial grade and business capability. KEXIM also plans to support businesses by covering guarantee fees through a contribution to the Korea Credit Guarantee Fund, reducing costs by up to 3% over three years.
The bank will improve credit evaluation systems to lessen the burden on companies with lower credit ratings and create venture funds focused on artificial intelligence, advanced industries, and K-culture, linking investment with loans. Additionally, KEXIM will lower interest rates to 1% for restructuring small and medium-sized enterprises that are consistently repaying their debts. The bank also intends to write off 16.2 billion won in long-term, uncollected special debt.
KEXIM expects this program to create an ecosystem supporting Korean small and medium-sized venture companies through all stages of growth.
