The Export-Import Bank of Korea is collaborating with the Korea Defense Industry Association to enhance financial support for small and medium-sized defense companies aiming to expand their exports.
On October 7, the bank announced that it has signed a memorandum of understanding (MOU) with the association to promote cooperation between small and medium-sized enterprises (SMEs) and large defense firms, as well as to strengthen the export competitiveness of SMEs through financial support. The two organizations also agreed to collaborate on the exchange of information related to the defense industry.
This agreement is part of the government's initiative to support the entry into the 'Top Four Defense Powers' and to expand cooperation within the defense industry. The aim is to enhance export financing support so that the benefits of large defense companies' export growth can extend to their smaller partners.
Earlier, in April, the Export-Import Bank signed a defense cooperation agreement with five domestic defense companies, including LIG D&A, Korea Aerospace Industries (KAI), Hanwha Systems, Hanwha Aerospace, and Hyundai Rotem. In August, it provided 120 billion won in financing for the first time to facilitate payments for small and medium-sized partners.
Lee Nam-woo, the association's vice president, stated, “The association will actively assist defense companies in achieving tangible results in exports by serving as a bridge between the Export-Import Bank and our member companies.”
Hwang Gi-yeon, president of the Export-Import Bank, emphasized, “We need to maximize the spillover effects of the recent export boom among large defense companies to strengthen the defense ecosystem. We will utilize our financial capabilities to support SMEs in enhancing their export capabilities.”
The Export-Import Bank will also participate in a defense export briefing for all members of the association on October 8, where it will introduce a comprehensive financial support package aimed at expanding exports for defense companies.
* This article has been translated by AI.
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