[Sponsored Report] MOUs for opportunities in Europe

Korea Eximbank CEO Kim Yong-hwan with Total’s CFO Patrick de La Chevardiere, left, and Betsy Nelson, Vice President of Risk at EBRD, right, after signing MOUs on Monday and Wednesday, respectively. Provided by the company

The Export-Import Bank of Korea (Eximbank) has been paving the way for Korean businesses in Europe through a series of MOUs, announced its CEO Kim Yong-hwan on Thursday. The MOUs were signed during President Park Geun-hye’s official trip to Europe, which Kim is accompanying her on.

In France, the president’s first destination, Eximbank signed MOUs with Proparco, Total and Societe Generale, three institutions considered pillars of the French development finance, petroleum and commercial finance industries.

“We expect that the MOU [with Proparco, a subsidiary of the French Development Agency] will propel the businesses of France and Korea to reach out to emerging markets, which have huge potential but also funding problems,” said Kim.

The MOUs will establish a strong network in Europe, through which Korean companies and financial institutions can pursue overseas projects. Korean businesses can make use of the French institutions to tap into the financial and energy industries in Europe and in developing countries.

Park’s recent trip to the U.K. was also fruitful. Eximbank signed MOUs with three institutions - the European Bank for Reconstruction and Development (EBRD), UK Export Finance (UKEF) and Seadrill - and is currently waiting to sign a fourth with Barclays.

According to the MOU signed on Wednesday, Eximbank and the EBRD, an international development bank in London, will promote joint financing in emerging economies. Kim expressed his anticipation, calling the two institutions “perfect partners for supporting large-scale landmark businesses in emerging economies.”

On Tuesday, Eximbank also signed an MOU with UKEF to jointly provide $1 billion as support for British and Korean companies’ expansion into the third world market. Korean businesses will enjoy investment opportunities in the areas of resource development and petrochemicals, according to Kim. On the same day, the bank agreed on an MOU to provide customized shipping finance for Seadrill when the offshore drilling company orders from domestic shipbuilders.

“Eximbank has made huge achievements, strengthening the basis for cooperation in diverse areas of international development, energy supply, commercial finance and so on,” said Kim. “We will provide full financial support for domestic companies to expand to global market and win overseas projects.”

By Park So-yeon [soyeon_park@joongang.co.kr]