Logos of Eximbank (top), the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation
Logos of Eximbank (top), the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation

The Export-Import Bank of Korea, or Eximbank, announced Wednesday it has signed a memorandum of understanding with the Korea Credit Guarantee Fund (Kodit) and the Korea Technology Finance Corporation (Kibo) to launch a financial support program aimed at stabilizing supply chains.

The new initiative combines Eximbank’s loans with guarantees from the two institutions to provide financial relief for small and medium-sized enterprises and mid-tier companies involved in supply chain projects. The program, designed to lower financing costs for these businesses, is set to officially launch on Thursday.

Under the agreement, Kodit will provide 150 billion won ($104 million) in guarantees, while Kibo will contribute 50 billion won ($34 million). Eligible companies can benefit from guarantee fee discounts of up to 0.4 percentage points and interest rate reductions of up to 0.5 percentage points on Eximbank loans, the company explained.

“This partnership ensures that SMEs and mid-tier companies, even those with weaker credit ratings, can secure vital financial resources to navigate supply chain disruptions,” an Eximbank official said.

The initiative is part of a broader effort outlined in last month’s First Basic Plan for Supply Chain Stabilization, which focuses on strengthening supply chain resilience amid growing uncertainties.

The three institutions have also pledged to explore further strategic partnerships with other institutions to develop innovative financial solutions for supply chain vulnerabilities.

“This agreement not only supports businesses operating in critical supply chain sectors but also lays the groundwork for stable and sustainable industry growth,” the official added.

By Park Li-na (linapark@heraldcorp.com)