Korea

The Export-Import Bank of Korea has announced that it plans to increase trade financing to 13.5 trillion won (US$13 bn) this year from last year's 11.5 trillion won.

The government said yesterday it would limit its special loans for small- and medium-sized companies (SMEs) to high-technology firms beginning this year.

Loans to small- and medium-sized companies (SMEs) posted a record decline last month, as lenders were reluctant to extend loans amid the protracted economic slump, the central bank said.

Local financial services companies are set to establish a “joint debt collection firm” in the near future, in a bid to further reduce the number of credit defaulters (both individuals and companies), according to the Ministry of Finance and Econom

The South Korean government will increase direct loans to small- and medium-sized enterprises (SMEs) in 2005, as private lenders have been tending to avoid extending credit to those companies because of the sagging economy, officials said Sunday.

The Industrial Bank of Korea will lend 20 trillion won (US$19bn) to small- and medium-sized enterprises (SMEs) this year, up 5.3 per cent from a year earlier.

The Export-Import Bank of Korea, a state-run trade bank, said it will increase its lending by 41% to 24 trillion won (US$22.8bn) in 2005.

The Financial Supervisory Service (FSS) said it will introduce the new Basel Accord, also known as Basel II, by 2007 to keep pace with advanced banking systems.

South Korean loans to small- and medium- sized enterprises (SMEs) are likely to have grown at a record low rate this year, as commercial lenders introduce stricter standards for lending, the central bank said.

The Ministry of Commerce, Industry and Energy announced that it will expand foreign exchange risk insurance coverage for small- and medium- size enterprises (SMEs) to support the country's export drive.