Korea Eximbank and PPS join forces ... “Loan limits up 10%”

[Financial News] The Export-Import Bank of Korea signed an agreement with the Public Procurement Service on strategic materials stockpiling and supply chain finance cooperation on the 28th.
According to Korea Eximbank on the 29th, the agreement is intended to link the Public Procurement Service’s strategic materials stockpiling capabilities with the bank’s supply chain stabilization financing. The aim is to support Korean companies in securing key raw materials.
Under the agreement, the Public Procurement Service will provide Korea Eximbank with information on companies participating in stockpiling programs, including operators of public-private joint stockpiling projects, as well as innovative SMEs that use stockpiled raw materials. Korea Eximbank will provide financial services to those companies.
Korea Eximbank’s Supply Chain Stabilization Fund will introduce the “Strategic Materials Stockpiling and Import Diversification Support Program.” Through the program, companies can borrow money to purchase strategic materials and to build or expand stockpiling facilities.
Companies using the program will receive an interest-rate benefit of up to 2.4 percentage points, and their loan limits will also increase by 10% from the current level. The program is intended to ease companies’ cost burdens and encourage them to increase their stockpiles.
“To strengthen our ability to respond to supply chain crises, not only government-level efforts but also the participation of private companies is essential,” Hwang Ki-yeon, president of Korea Eximbank, said. “Korea Eximbank will use its supply chain stabilization function to encourage private-sector participation in stockpiling, broaden the foundation for securing strategic materials domestically, and contribute to supply chain security.”
[email protected] Park Mun-su Reporter