The Leadership and Future of Korea Eximbank

November 30, 2021

By Janardan Gautam, 2021 GMPA Student(Public Management and Public Sector Reforms)

Korea Export-Import (KEXIM) Bank:

Trajectory and Future

Today, on 29th of November 2021, we; the GMPA students are provided with unique opportunity to hear from the chairman and president of Korea Export and Import Bank, Mr. Bang Moon Kyu. I must admit that this is one of the much awaited lectures in this ongoing CEO lecture series.

This paper will explore and summarize the lecture from the chairman and the discussions made between the presenter and students. Chairman presented the overview of the bank, modalities for financing, challenges ahead and concluded his presentation with the image of KEXIM from the future.

Established in 1976 with the prime mandate of promoting international business of Korean companies, the bank mainly works in the field of infrastructure and plant, maritime, natural resources, service industry, small and medium enterprises and overseas market expansion. Bank is export credit agency, a state lender. According to the research conducted by different organization, the bank has been ranked at the top with very strong indicators. The presence of the bank can be felt around the globe having 29 offices and 4 subsidiaries in 30 different countries from Asian, African and American continents. Contribution of the bank to Korean GDP in 2020 was 2020.

Regarding the financing modalities, the bank provides loan, ensures investment, provides guarantees and feasibility study and advisory services as per the need of the companies or of the government. The bank is the executor of Economic Development Cooperation Fund (EDCF) for enhancing the better relationship and cooperation with the developing world and Inter Korean Cooperation Fund (IKCF) which is mandated with the task of contributing to the foundation for reunification of the two Koreas and serves as a clearing settlement bank with the foreign trade bank of North Korea. EDCF works as South Korean Official Development Assistance Program which looks after the concessional loans to LDCs for their economic growth and infrastructure development.

EDCF from 1987 invested 21 trillion Korean Won to the 57 different countries for 457 different projects. Regionally, Asia received the highest amount of money and sector wise, transportation is at the top as a receiver.

When talking about the project cycle, he gave emphasis on the time duration for finalizing the projects. He also identifies of the clash of interests of different government organization and ministries in the developing world as the problem to identify and to implement the project.

While talking about the challenges ahead, he finds the pandemics, such as Covid-19, as the one of the major challenges in this sector. Fighting with climate changes and minimizing the adverse effects are also identified as issues of grave concern. Korean government’s declaration towards zero carbon country by 2050 has also made the way ahead more challenging.

To overcome the challenges, he emphasizes, on financing on innovation, eco-friendly green economy and supporting for the sustainable development of small and medium scale industries to achieve sustainable growth with green financing. He concluded his presentation with the hope of ‘spreading ESG Values and exporting sustainable growth’ in international arena with the cooperation between or among the economies around the world.

His presentation was followed by the active question answer session. Most of the students were interested in financing modalities, negative impacts of global pandemics and normalization, and climate change issues. Balancing the personal life and public life for a high level leadership was also the issue of the discussion. While answering the queries, the shares his crucial personal experiences of being a public worker and being a leader in the strategically important organization.

I feel honored to attend such an important and informative session and personally thankful to the management of GMPA and to the presenter for this unique opportunity.