Export-Import Bank of Korea Expands Funding Support for Shipbuilding Industry

Export-Import Bank of Korea president Bang Moon-kyu (front) visits the dockyard of Hyundai Heavy Industries in Ulsan on May 26.

The Export-Import Bank of Korea has increased its funding for shipbuilders from 3.8 trillion won to 5.2 trillion won.

“We have increased financing for shipbuilding by 1.4 trillion won to support shipbuilders and their small and medium-sized partners,” the bank said on May 27. The bank’s president Bang Moon-kyu visited Hyundai Heavy Industries and TSP in Ulsan the previous day and said, “We will use all our capabilities to help the shipbuilding industry overcome the crisis so that it can solidify its global market position after the COVID-19 crisis.”

In particular, the bank plans to expand its win-win cooperation loans from 1.6 trillion won to 1.9 trillion won in cooperation with shipbuilders so that the funds can be used first as payments to small and medium-sized suppliers.

Han Young-seok, CEO of Hyundai Heavy Industries, said during his meeting with Bang that shipbuilders are likely to have difficulties in securing operating funds as an order drought is expected to continue for a considerable period of time due to COVID-19. “We hope that the government will expand not only shipbuilding financing but ship financing so that Korean and foreign shipping companies can place shipbuilding orders on Korean shipbuilders.”

Choi Yang-hwan, CEO of Sejin Heavy Industries, requested that large shipbuilders and financial institutions provide assistance for small and medium-sized suppliers to secure work and meet funding difficulties.