BNK Kyongnam Bank to Provide 7.8 Billion Won in Preferential Financing to Midsize Exporters

Signs an "Export Package
Preferential Financing MOU" with the Korea Trade Insurance Corporation

BNK Kyongnam Bank has joined hands with the Korea Trade Insurance Corporation to ease the financial burden on local small and midsize exporters facing economic uncertainty at home and abroad and strengthen their export competitiveness.

On October 14, BNK Kyongnam Bank signed an “Export Package Preferential Financing MOU” with the Korea Trade Insurance Corporation to expand financial support for importers and exporters.

Export Package Preferential Financing Agreement. [Photo courtesy of Kyungnam Bank]

Attendees at the signing ceremony, held in the main conference room at BNK Kyongnam Bank’s headquarters, included Hwang Jae-cheol, head of the Corporate Customer Group at BNK Kyongnam Bank, and Yoo Seung-hee, vice president of the Korea Trade Insurance Corporation.

The MOU was established to expand export financing support for businesses located in the region, in line with the government’s policy of balanced regional development and its drive to promote mutually beneficial finance.

Under the agreement, BNK Kyongnam Bank will make a special contribution of 500 million won to the Korea Trade Insurance Corporation, which will use the funds to provide preferential financing worth a total of 7.8 billion won.

It also plans to ease the financial burden on importers and exporters by lowering loan interest rates, offering preferential foreign exchange fees, and providing support for guarantee and insurance premiums.

The Korea Trade Insurance Corporation will offer benefits to small and midsize importers and exporters recommended by BNK Kyongnam Bank, including guarantee limits of up to twice the standard amount, a guarantee ratio increased to 95%, and a 20% discount on guarantee and insurance premiums.

In particular, for businesses in industries designated as growth engines for the “5 Mega-Regions and 3 Special Regions,” the corporation plans to increase guarantee limits to as much as 2.5 times the standard amount, contributing to regional economic revitalization.

Support for guarantee and insurance premiums is available for up to one year per company, with a maximum support limit of 10 million won.

BNK Kyongnam Bank and the Korea Trade Insurance Corporation expect the MOU to help local small and midsize exporters with limited collateral or high financing costs secure funds on more favorable terms.

They also expect that supporting smooth fund management for importers and exporters will help stabilize their businesses, strengthen the competitiveness of regional export industries, and revitalize the local economy.

“As uncertainty in the global trade environment persists, exporters are facing greater challenges in securing funds and bearing financing costs. I hope this MOU will help local exporters secure funding more reliably and focus on their business operations. BNK Kyongnam Bank will continue to support the stable growth of businesses,” said Hwang Jae-cheol, head of BNK Kyongnam Bank’s Corporate Customer Group.

BNK Kyongnam Bank’s proactive financial support for local midsize exporters is a welcome step for a regional bank, offering hope to businesses facing difficulties.

This content was produced with the assistance of AI translation services.