SMBA and the Export-Import Bank of Korea (KOEXIM Bank) concluded an MOU on October 15 at the bank and decided to mutually cooperate in securing the global competitiveness of SMEs.
Under the MOU, to facilitate the online trading SMEs with inferior credit ratings, SMBA and KOEXIM Bank agreed to support their overseas advancement activities, including preferential treatment for financial products and exchange risk consulting.
Moreover, regarding SMEs damaged by KIKO (Knock In Knock Out) from dealing with KOEXIM Bank and others damaged by KIKO that received SMBA's policy funds, SMBA and KOEXIM Bank agreed to select those having high revival possibility in the future and support them after appraisal of their credit ratings excluding the KIKO loss amounts.
The projected support is expected to have such effects as an increase in 1.6 levels on average in credit rating, a 92% rise in credit ceiling, and a drop of at least 0.6 percentage point up to 2.28 percentage points in loan interest rates.
Furthermore, the two organizations agreed to cooperate mutually to stimulate SMEs' trade following conclusion of the Korea-EU FTA.
With conclusion of the MOU, SMBA expects that supply of funds for SMEs in new growth fields, online business enterprises, etc., will be more or less smoothened, while helping to achieve early management normalization for KIKO-damaged SMEs by preparing support methods with respect to banking institutions.