The Export-Import Bank of Korea (Korea Eximbank) announced on Friday a new Memorandum of Understanding (MOU) with Mongolia’s Trade and Development Bank (TDB). This agreement establishes a $30 million on-lending financing facility specifically designed to bolster the export of Korean consumer goods to Mongolia.
This strategic agreement will channel crucial policy financing directly through TDB, leveraging its extensive network of over 90 branches across Mongolia. This robust infrastructure enables TDB to effectively reach and support numerous Mongolian importers of diverse Korean products, including food, cosmetics, and various other consumer goods.
Notably, this marks Korea Eximbank’s first on-lending support initiative for Mongolia since 2017. Assistance had been temporarily suspended following Mongolia’s foreign exchange crisis at that time, making this resumption a significant development in bilateral economic cooperation.
Korea Eximbank anticipates that this program will significantly strengthen the export competitiveness of Korean enterprises operating within Mongolia. Simultaneously, it aims to alleviate financing challenges faced by Korean businesses, fostering a more stable and supportive environment for their operations and expansion.
The state-run lender plans to fully leverage TDB’s extensive nationwide network to ensure rapid and efficient delivery of financing. This approach is designed to specifically facilitate the successful entry and expansion of Korean small and medium-sized enterprises (SMEs) and mid-sized companies into the promising Mongolian market.
Globally, Korea Eximbank currently manages approximately $8 billion in on-lending credit lines, distributed through 24 partner banks across 10 countries. The institution is strategically broadening its support scope beyond conventional export sectors like automobiles and electronics, aiming to encompass a more diverse array of Korean culture-related industries, reflecting evolving market demands.
“Mongolia stands out not only as one of the world’s most resource-rich nations but also as a pivotal strategic gateway, effectively connecting Central Asia and Northeast Asia,” stated Hwang Ki-yeon, President of Korea Eximbank.
He further elaborated, “Through the implementation of this on-lending facility, we anticipate a significant boost in the exports of Korean products. Concurrently, it will contribute to fostering more diversified bilateral trade between our nations, notably including the import of critical minerals from Mongolia.”
President Hwang emphasized that Korea Eximbank remains committed to consistently providing policy financing. This ongoing support is vital for strengthening the export competitiveness of Korean consumer goods companies, especially given the continuous expansion of Korean retail and franchise brands’ presence throughout the Mongolian market.
jwjeon7625
