The Export-Import Bank of Korea plans to establish a fund worth at least 200 billion won ($145 million) to support small and medium-sized enterprises in expanding their overseas operations, the state-run lender announced Tuesday.
The policy lender is set to establish the fund in the first half of next year after gaining approval from the finance minister. It will select an asset manager to operate the fund.
While the lender will finance 200 billion won, the fund is targeted at 1 trillion won. The selected fund manager can raise the remaining 800 billion won from the private sector.
Eximbank further explained that it will offer incentives to promote balanced national growth, such as giving out a portion of its profit to the asset manager if the fund invests in companies domiciled outside the Greater Seoul area, or when its portfolio companies relocate their headquarters to those regions.
“The fund was launched to support Korea’s small and mid-sized exporters overcome economic challenges at home and abroad, while promoting balanced national growth in line with the new administration’s policy direction,” an official from Eximbank said.
Earlier in the year, the bank committed 200 billion won to establish a fund focused on advanced strategic industries, including semiconductors, batteries, biotechnology, future mobility and advanced electronics.
silverstar@heraldcorp.com
