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The headquarters of the Export-Import Bank of Korea in Seoul. (Photo: Export-Import Bank of Korea) |
[Alpha Biz= Paul Lee] Export-Import Bank of Korea (KEXIM) announced it will launch a KRW 40 trillion (approximately USD 30 billion) “Emergency Response Special Program” over the next five years to support Korean companies affected by escalating geopolitical tensions in the Middle East.
The policy bank held an emergency meeting on March 2 to review potential real-economy shock scenarios and establish preemptive financial support measures. Senior management, relevant department heads, and overseas representatives from the Middle East participated in the meeting, discussing contingency plans for potential disruptions to logistics through the Strait of Hormuz and surging energy prices.
Under the special program, small and mid-sized enterprises will be eligible for preferential interest rates of up to 2.2 percentage points. Starting with KRW 7 trillion this year, KEXIM plans to supply a total of KRW 40 trillion in liquidity over five years to help ease corporate financial strain.
To address potential instability in energy supply, the bank will also support diversification of crude oil and gas import sources. It is reviewing measures to provide funding for oil purchases through the Supply Chain Stabilization Fund. To bolster foreign currency liquidity, KEXIM plans to mobilize all available instruments, including private placements and commercial paper (CP), to help stabilize the market.
KEXIM has established a dedicated Middle East Response Desk at its headquarters to monitor developments in key countries such as Iran, the United Arab Emirates (UAE), and Saudi Arabia in real time. If conditions worsen, the bank will shift to a 24-hour response system and implement phased measures to ensure the safety of overseas staff, including remote work and evacuation to third countries if necessary.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
