Export-Import Bank of Korea CEO Yoon Hee-sung speaks at a parliamentary audit held at the National Assembly, western Seoul on Oct. 24. (Newsis)
The Export-Import Bank of Korea, or Eximbank, announced it will form a 1 trillion won ($745 million) fund to support businesses in high-tech strategic industries, especially semiconductors and batteries.
The policy lender will put in 150 billion won toward the fund which will close out at 1 trillion won. The fund will be used to provide preferential interest rates and loan limits to businesses related to chips, battery, bio, future mobility and electric engineering.
It is the second fund established by the policy lender to provide financing for businesses in high-tech strategic industries. The initial fund, which kicked off last year with Eximbank’s 150 billion won, also closed out at 1 trillion won.
The new fund is to be launched this year, following approval from the Finance Minister. The state lender said it will separate the selection process for general partners to run the fund based on the size of the asset manager to ease competition.
By having more asset managers, the fund's range of investment vehicles and strategies will be diversified, it explained.
"The fund will attract investments in high-tech strategic industries from the private sector, encouraging Korean businesses to secure global leadership,” an official from the Eximbank said.
Eximbank said it will put in another 50 billion won to form a separate fund to encourage local SMEs to expand overseas in the second half of this year.
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