The recent surge in exchange rates, coupled with geopolitical risks from the Middle East, has increased uncertainty for small and medium-sized enterprises (SMEs) involved in imports and exports. This initiative aims to alleviate the dual burden of high import payment costs and liquidity shortages faced by SMEs during this high exchange rate period. The loan interest rate is set at the level of the bank's procurement cost, maximizing the financial benefits for borrowers, although refinancing loans from other financial institutions are excluded from this support.
This emergency assistance is part of a 'Crisis Response Special Program' that offers preferential interest rates of up to 2.2 percentage points to SMEs and mid-sized companies affected by the Middle East crisis. The Export-Import Bank plans to increase the support scale of this program from 7 trillion won to 8 trillion won this year. Additionally, to manage risks associated with sudden exchange rate fluctuations, the bank is providing a 'currency conversion option' that allows borrowers to switch between foreign and Korean currency at no cost.
An Export-Import Bank official stated, "As the loan interest rates are determined based on the bank's strong credit rating, companies with high financial costs will feel a more significant impact from the interest rate reduction."
* This article has been translated by AI.
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