Korea Eximbank is set to provide $30 million in financial support to a local bank in Mongolia. This initiative aims to connect the growing demand for K-culture and Korean consumer goods in Mongolia with the expansion of exports by Korean companies, while also strengthening financial support for small and medium-sized enterprises operating in the region.
On July 9, Korea Eximbank announced that it had signed a memorandum of understanding (MOU) with the Mongolia Trade Development Bank (TDB) for the $30 million financial support. The agreement was finalized during a summit between South Korean and Mongolian leaders held in Ulaanbaatar.
In this indirect financing arrangement, Korea Eximbank will supply funds to the local bank, which will then provide loans to local companies purchasing Korean exports. This marks the resumption of financial support after a nine-year hiatus following Mongolia's foreign exchange crisis in 2017.
TDB operates over 90 branches in Mongolia and has secured numerous client companies that import food, beverages, and cosmetics from South Korea. Korea Eximbank plans to leverage this network to quickly supply funds, thereby supporting the increase of exports from Korean small and medium-sized enterprises to Mongolia and helping them establish a foothold in the new market.
Hwang Gi-yeon, president of Korea Eximbank, stated, "Through this financial support, we expect to enhance the export of Korean products and diversify trade between the two countries, including the import of key minerals. As Korean companies are actively entering the Mongolian market, we will continue to provide policy financing support to strengthen their export competitiveness."
* This article has been translated by AI.
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