Negotiations over ‘win-win contribution’… Jin-seok Moon, “In order to respond to competition for orders, we need to introduce it quickly.”

Negotiations over ‘win-win contribution’… Jin-seok Moon, “In order to respond to competition for orders, we need to introduce it quickly.”

(Seoul = Yonhap News) Reporter Ahn Jung-hoon = As the need for government-guaranteed buyer financing is increasing to support large-scale export projects such as nuclear power plants and defense industries, it was pointed out on the 5th that the launch of the Strategic Export Finance Fund to support this is sluggish.

According to data submitted by Jin-seok Moon of the Democratic Party of Korea, a member of the National Assembly's Finance and Economic Planning Committee, from the Korea Trade Insurance Corporation and the Export-Import Bank, the amount of buyer financing executed by both organizations from 2020 to July of this year amounts to 59.0834 trillion won.

In the case of unsecured loans, support is only possible within the contract limit set by the National Assembly every year, and in the case of Eximbank, the credit limit for the same person (company) compared to equity capital is limited to 40%, so it has been pointed out that support efficiency is low.

Considering this, the need to launch a 'Strategic Export Finance Fund' has been consistently raised, but the bill is currently unable to pass the National Assembly standing committee threshold.

This is because no agreement has been reached on the provisions of the bill that would introduce a win-win contribution and deposit a certain portion of the profits of beneficiary companies into the fund's industrial ecosystem support account to be used to support the strategic industry ecosystem.

Institutions explain that the win-win contribution is not imposed on all support projects, but only before and in conjunction with an export contract, so the burden on companies is not significant.

According to the Korea Exchange Bank's estimates, the win-win contribution will only account for 40% of the total purchaser financial support amount.

Representative Moon Jin-seok said, “Contracts with contributions are contracts that would not have been concluded in the first place if the government had not taken on the risk,” and emphasized, “In order to respond to the competition for orders that has become a national war, the introduction of the Strategic Export Finance Fund cannot be delayed any longer.”