"$70 Million in Financial Cooperation"... The Export-Import Bank of Korea Signs Partnership with ForteBank of Kazakhstan

[Financial News] The Export-Import Bank of Korea (KEXIM) signed a memorandum of understanding on "Establishing On-Lending Limits and Expanding Financial Cooperation" with ForteBank of Kazakhstan.
According to The Export-Import Bank of Korea (KEXIM) on the 16th, the agreement was arranged on the occasion of the "1st Korea-Central Asia Summit" held the previous day. Following the summit, Hwang Ki-yeon, President of KEXIM, met with Talgat Kuanyshev, President of ForteBank, and signed the MOU. ForteBank is a private commercial bank that was launched in 2015 through the merger of Alliance Bank, Temirbank, and the former ForteBank in Kazakhstan.
The two banks are pursuing the establishment of a $70 million on-lending limit. The areas of cooperation cover five sectors: food, beauty and cosmetics, electricity and renewable energy, machinery and equipment, and information and communication technology (ICT). On-lending is an indirect financing method in which KEXIM lends funds to a local bank abroad, which then lends the funds to the importer (a local company) of goods exported by Korean companies.
The significance of this agreement is that it marks the first on-lending limit arrangement with a local private bank since KEXIM resumed on-lending to Kazakhstan last year for the first time in 10 years.
Previously, KEXIM approved a $100 million on-lending limit for the Development Bank of Kazakhstan (DBK) last year. Through its cooperation with ForteBank, KEXIM has expanded its cooperation base to include private banks, thereby diversifying its channels for supporting local corporate financing.
The Development Bank of Kazakhstan focuses on national strategic industries and large-scale projects as its main areas of cooperation. In contrast, ForteBank, a commercial bank, has a network of local companies across various industries, including food, beauty, and machinery, and is therefore expected to provide focused support for the consumer goods sector.
"Kazakhstan, a resource-rich country, and Korea, with advanced technology and manufacturing capabilities, can be ideal strategic partners," said Hwang. "Through on-lending, we will strive to serve as an essential financial partner for Korean companies entering the local market."
Meanwhile, KEXIM also signed a memorandum of understanding with the Ministry of Energy of Kazakhstan for the implementation of the Economic Innovation Partnership Program (EIPP). KEXIM plans to provide customized policy advice on Kazakhstan's eco-friendly energy transition projects.

[email protected] Park Mun-su Reporter