Korea Export-Import Bank Signs $3 Billion Financial Deal with Aramco

Korea Export-Import Bank (KEXIM) has entered into a financial agreement with Saudi Arabia's state-owned oil company, Aramco, to support domestic companies. This initiative aims to enhance competitiveness in securing contracts in the Middle East and stabilize supply chains for essential resources like crude oil.

KEXIM announced on May 22 that it has signed a $3 billion individual loan financial contract based on a master credit agreement with Aramco.

The master credit agreement establishes pre-defined financial support limits and conditions for overseas prime contractors, allowing for rapid financing when Korean companies secure contracts or engage in joint ventures.

KEXIM has previously provided financial support for large projects led by Aramco, including the Amiral petrochemical facility project and the Jafurah combined heat and power project, assisting local companies in securing contracts in the region.

With this new agreement, KEXIM plans to mobilize various policy financing tools to support Korean companies participating in Aramco's infrastructure restoration projects and new gas and energy ventures once the situation in the Middle East stabilizes.

A survey conducted by KEXIM among 505 export companies revealed that 73.5% of respondents reported negative impacts from the ongoing conflict in the Middle East. The most cited issue, affecting 69.6% of respondents, was fluctuations in raw material prices.

Hwang Gi-yeon stated, "The signing of this $3 billion financial contract marks a significant milestone in elevating the strategic financial cooperation between our two institutions. I hope to see increased participation of Korean companies in future large-scale projects initiated by Aramco, and we will serve as the most reliable and swift bridge for this purpose."