"Expanding Export Opportunities": The Export-Import Bank of Korea (KEXIM) to Provide $100 Million in On-Lending Finance to Mexico; President Lee Jae Myung Calls for Expanded Trade

[Financial News] With President Lee Jae Myung on a state visit to Mexico, KEXIM and Mexico's National Bank of Foreign Trade (BANCOMEXT) signed a memorandum of understanding on the 24th (local time) to provide $100 million in on-lending finance.
The two countries' export credit agencies agreed to actively pursue financial cooperation in automobiles, electrical and electronic goods, biotechnology and medical care, agriculture and food, beauty, mineral resources and energy, and aerospace. The agreement was exchanged at a ceremony held at the presidential palace in Mexico City in the presence of President Lee and Mexican President Claudia Sheinbaum.
Following his summit with Mexican President Claudia Sheinbaum, President Lee said in a joint press statement, "President Sheinbaum provided significant help in ensuring additional volumes of crude oil were supplied to our companies." He added, "Regarding supply chains, we agreed to launch a dialogue channel between the relevant ministries of the two countries to discuss crude oil and critical resources." Referring to areas including crude oil, defense and advanced industries, he said, "We agreed to seek opportunities for cooperation so that trade and investment between the two countries can expand."
Korea is resuming on-lending finance in Mexico for the first time in eight years. On-lending finance is an indirect form of financial support in which KEXIM lends funds to a foreign local bank, which then provides loans to local importers purchasing from Korean export companies. By activating the facility, KEXIM will make it relatively easier for Mexican buyers doing business with Korea to secure financing, creating conditions for Korean exporters to expand their export contracts. The program is expected to provide a stable financing foundation for Korean companies seeking to enter markets across the Americas. KEXIM currently operates on-lending limits totaling $7.7 billion at 23 banks in nine countries. In the Americas, it provides on-lending finance in Brazil, Colombia and Panama.
Mexico has a large domestic market with a population of approximately 130 million. It has also strengthened its position as a strategic hub for entering the U.S. and other markets in the Americas by signing free trade agreements with more than 50 countries. Factories operated by major Korean companies, including Samsung Electronics, LG Electronics and Kia, are currently running there, while related parts industries have also entered the market. Companies are also actively expanding into K-consumer goods, such as food and cosmetics, as well as K-medical sectors, including aesthetic medical devices and medical imaging equipment.
Hwang Ki-yeon said, "Mexico is Korea's top trading and investment partner in Latin America, and opening the way for policy finance in the Mexican market, which had been an underserved area for on-lending finance, is a meaningful achievement." He added, "We will broaden the scope of financial support beyond traditional manufacturing to K-consumer goods and medical sectors, thereby supporting stronger trade between the two countries."
[email protected] Jo Eun-hyo Reporter