Eximbank awarded for supporting SMEs in exports

Export-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu, center, poses with President Yoon Suk-yeol, left, after the bank got a presidential commendation at the convention for SMEs held at the presidential office complex in Yongsan District, Seoul, Wednesday. Courtesy of Eximbank

By Yoon Ja-young

The Export-Import Bank of Korea (Eximbank) got a presidential commendation for supporting the country's small and medium-sized enterprises (SMEs) in their exports.

According to Eximbank, it was awarded the presidential commendation at the annual convention for SMEs organized by the Korea Federation of SMEs at the presidential office complex in Yongsan District, Seoul, Wednesday. It is the biggest event for SMEs, awarding not only business leaders who have contributed to the national economy and job creation but also those who have helped SMEs to grow and develop. Eximbank was the only financial institution to get a presidential commendation for its contributions to SMEs.

The bank has been steeply increasing funding for SMEs during the past decade. It supported them with a record high of 30 trillion won in funding last year, which compares with around 20 trillion won in 2012. The funding for the first half of this year is expected to total 16.6 trillion won, breaking the record again.

Last year, loans it offered for SMEs took up 50.2 percent of the total, which is a record high in itself and more than the amount offered for large businesses. The portion of loans to SMEs is estimated to reach 53 percent as of the end of June.

The expansion of support by Eximbank helped SMEs with exports. Despite the disruption in logistics and the problem in securing resources, exports by the country's SMEs totaled $228.4 billion in 2021, which is a record high and up from $190 billion the previous year.

The bank has been making efforts to expand support for SMEs in their exports, including launching a team in charge and strengthening cooperation with other organizations. As a result, the number of SMEs benefiting from the Eximbank program increased by 41 percent to 6,105 in 2021, from 4,316 in 2018.

It has, in particular, focused on SMEs that lack experience in exports, or those whose annual exports do not exceed $5 million, so that they can grow into small but strong players in the global market. The bank also started the Hidden Champion program, which nurtures 250 SMEs equipped with advanced technologies so that their potential in exports comes true. It has signed MOUs with diverse organizations, such as the Korea SMEs and Startups Agency and the Korea Technology Finance Corporation, to expand access to SMEs with technologies and increase support.

As 97 percent of the loans offered by Eximbank are credit loans, SMEs that are equipped with technology while lacking collateral are evaluating the Eximbank program especially highly. A small automobile component manufacturer, for instance, had trouble finding funding from other banks due to its bankruptcy record. Eximbank, however, offered funding, taking into account its technology and sales network, and the firm made a successful comeback, recording an annual sales increase of 27 percent.

"Our efforts to nurture SMEs were recognized as Eximbank received the presidential commendation. We will continue our support so that local SMEs equipped with technology can grow into small but strong players in the global market," Eximbank CEO Bang Moon-kyu said.

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