The Korea Export-Import Bank (Eximbank Korea) is actively supporting Korean businesses facing challenges due to the ongoing conflict in the Middle East. This support includes comprehensive financial assistance and the establishment of a dedicated response team at its Seoul headquarters.
On Tuesday, the state-run lender announced the activation of a risk response program designed to provide up to 40 trillion won ($27.3 billion) in emergency liquidity to Korean companies impacted by the geopolitical tensions, including those stemming from the US and Israel-Iran conflict.
This decision followed a meeting held on Monday where officials assessed potential economic shock scenarios, such as logistical disruptions, spikes in energy prices due to a possible Strait of Hormuz blockade, and increased market instability.
The financial aid, earmarked for distribution over the next five years, includes 7 trillion won allocated for disbursement this year. The program offers preferential lower-interest loans specifically for small and midsize enterprises (SMEs).
Furthermore, Eximbank is evaluating strategies to stabilize supply chains, including providing financial support for crude oil purchases to mitigate potential energy supply disruptions.
The bank is also reinforcing its foreign currency liquidity management. In the event of increased demand for foreign currency, Eximbank plans to utilize various mechanisms, including mid- to long-term private placements and short-term commercial paper, to ensure adequate liquidity.
In addition to these financial measures, Eximbank has established a dedicated Middle East response desk at its Seoul headquarters. This team will closely monitor developments in the region and surrounding countries to provide timely support and guidance to Korean businesses.
jwc
