Eximbank says 26 firms hit by export restrictions

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Eximbank says 26 firms hit by export restrictions

The head of a state-run export credit agency estimated that a total of 26 Korean companies - mainly manufactures of semiconductors, displays and smartphones - have been directly affected by Japan’s export restrictions with an anticipated loss of 3.1 trillion won ($2.6 billion).

“Japan’s export restrictions have directly hurt 26 companies whose businesses concern semiconductors, displays and smartphones, based on a survey by the bank,” said Eun Sung-soo, CEO of the Export-Import Bank of Korea (Exim Bank), during a reporting session at the National Assembly on Tuesday.

The outstanding loans for those companies are worth 3.1 trillion won, raising concerns that they will not be able to pay them back.

This is the first official statement that detailed the number of companies and damages hit by the recent measure.

Asked if any support is being prepared, Eun said that a “financial injection is prepared for the affected area.”

Should the restrictions widen into broader industries, Eun said that the state-run bank will focus on supporting the suppliers of parts in the affected segments.

In the meantime, Governor Lee Ju-yeol of the Bank of Korea hinted at another rate cut on Tuesday during his reporting at the National Assembly if conditions related to the export restrictions worsen.

The central bank lowered its benchmark rate last week to 1.5 percent.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]
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