The export competitiveness in the AI era hinges more on effectively combining technology and finance than on the sheer volume of production. Countries worldwide are mobilizing policy finance to nurture AI, semiconductors, batteries, defense, shipbuilding, and biotechnology as strategic national industries.
Hwang Gi-yeon, president of the Korea Export-Import Bank, is redefining the bank's role from a mere 'lending institution' to a 'strategic investment agency designing the global expansion of South Korea's future industries.'
He views AI as a key tool not only for internal operational innovation but also for enhancing national export competitiveness, simultaneously advancing the establishment of a generative AI platform, AI-based policy finance, supply chain finance, and support for the overseas expansion of the AI industry. Hwang's vision is that AI should become a new export driving force for South Korea.
Redefining Export Financing in the AI Era
Upon his appointment, Hwang Gi-yeon redefined the purpose of the Korea Export-Import Bank. He emphasized that "the bank must evolve from a simple export financing institution to a strategic investor leading future industries and a frontline supporter in overcoming trade crises." He believes that policy finance must take the lead in nurturing national strategic industries such as AI, semiconductors, biotechnology, defense, nuclear power, and shipbuilding as future growth engines.
His philosophy is that finance should not merely follow industry but serve as a national strategy guiding its direction, a principle that underpins his AI policies.
Innovating Policy Finance with KEXIM AI
A flagship AI project under Hwang's leadership is the establishment of the 'KEXIM AI' generative AI platform. The Korea Export-Import Bank is developing an integrated platform featuring a generative AI system, an unstructured data platform, AI services, and AI governance through a project worth 13 billion won. Notably, the bank has opted for an internal network-based AI infrastructure rather than external cloud services, ensuring security and stability.
Hwang stated that he aims to expand AI beyond mere document creation and search tools to encompass the entire spectrum of operations, including review, risk management, and policy finance execution, thereby enhancing productivity and enabling businesses to access financial services more quickly and conveniently.
Financing the Export of AI Industries
Hwang aspires to create finance that exports the AI industry rather than merely supporting it. During a visit to Wonik IPS, he stated, "To cultivate the AI industry as a core future industry of our economy, we will strategically support the localization of domestic technologies across the entire AI value chain." He aims to expand the number of AI-related export companies and provide tailored financial solutions to help small and medium-sized enterprises secure technological leadership.
This approach transcends merely nurturing AI companies, positioning South Korea's AI industry for global market integration.
Integrating AI with Official Development Assistance
A distinctive aspect of Hwang's strategy is the integration of AI into Official Development Assistance (ODA). He is collaborating with the National Information Society Agency (NIA) to establish an AI and digital international development cooperation platform, promoting a new model that supports AI education centers and digital infrastructure in developing countries. This initiative aims to create a foundation for the overseas expansion of South Korean AI companies rather than just providing aid.
He stated, "We will create a new model of AI-based K-ODA that serves as a catalyst for the global expansion of our domestic AI industry," representing a novel approach that connects policy finance, AI, diplomacy, and industrial strategy.
Supply Chain Financing in the AI Era
The competitiveness of the AI industry stems from a stable supply chain. Hwang has secured a $500 million financial cooperation agreement with the Asian Development Bank (ADB) to stabilize the supply chain of critical minerals. Additionally, he is working with companies like LG Energy Solution, SK On, Samsung SDI, and Doosan Enerbility to establish a supply chain cooperative finance platform, expanding financial support to collaborating small and medium-sized enterprises.
In the AI era, securing semiconductors, batteries, rare earth elements, and critical minerals is vital for national competitiveness, leading to the conclusion that finance must be part of the supply chain strategy.
Transformative Finance for AI Transition
Hwang views productive finance as the cornerstone of policy finance in the AI era. He has formed a productive finance consultative body with the Industrial Bank of Korea, the Korea Development Bank, and the Korea Credit Guarantee Fund to jointly support advanced strategic industries, venture companies, climate technologies, and regional enterprises. The Korea Export-Import Bank plans to focus 22 trillion won on building AI transition infrastructure through the 'AX Special Program' over the next five years, with a goal of inducing 15 trillion won in private investment through over 3 trillion won in direct investments by 2028. His commitment to making AI the central axis of industrial innovation is clear.
Growing AI Finance with Small and Medium Enterprises
Hwang emphasizes that AI innovation should not be limited to large enterprises in the capital region. He plans to supply over 110 trillion won to small and medium-sized enterprises with technological capabilities and growth potential over the next three years, while also expanding preferential interest rates and supply chain finance for regional companies. His statement that "we will strengthen support to ensure that future strategic industries like AI can spread beyond the capital region" exemplifies his commitment to linking AI with national balanced development strategies. The philosophy behind AI finance is that it should create inclusive financial opportunities for all enterprises.
The Essence of Financial Entrepreneurship
Hwang Gi-yeon's vision of financial entrepreneurship is to make AI a cornerstone of South Korea's export competitiveness. He views AI not just as a tool for operational efficiency but as a national growth strategy. The establishment of KEXIM AI, AI industry finance, AI-based international development cooperation, supply chain finance, and the expansion of productive finance all align toward the same goal. His vision is for the Korea Export-Import Bank to be a strategic investment institution that opens pathways for South Korea's AI industry to enter global markets.
The competition for exports in the AI era begins with the integration of technology and finance, and Hwang is positioned as a proactive leader in policy finance implementing this integration.
SWOT Analysis:
Strengths
Hwang's deep understanding of policy finance and international finance, gained from 36 years at the Korea Export-Import Bank, is a significant strength. His comprehensive vision connects AI with national export strategies through initiatives like KEXIM AI, AI industry finance, supply chain stabilization, and AI-based ODA models.
Weaknesses
As a policy finance institution, the bank is heavily influenced by government policies and international circumstances. Most AI strategies are long-term projects, making it difficult to demonstrate short-term results, and global economic slowdowns and exchange rate fluctuations may pose challenges to policy implementation.
Opportunities
The growing global demand for advanced industries such as AI, semiconductors, defense, shipbuilding, and biotechnology significantly broadens the role of the Korea Export-Import Bank. Initiatives like KEXIM AI and AI-based international development cooperation and supply chain finance could serve as new growth engines for South Korean AI companies seeking to expand internationally.
Threats
The ongoing U.S.-China technological rivalry, protectionism, geopolitical conflicts, and global supply chain instability present continuous risks for both export companies and policy finance. The rapid pace of AI technological change may also complicate investment decisions.
* This article has been translated by AI.
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