An amendment to the law on increasing the capital limit of the Korean Export-Import Bank (Eximbank), aimed at supporting export contracts to Poland, was adopted by the Planning and Finance Commission on Friday. The vote on its adoption will take place in the National Assembly on February 29.
The draft amendment assumes an increase in Eximbank’s equity from 15 to 25 trillion won (from about PLN 45 to 75 billion). The aim is to enable more financing of export contracts, such as arms exports to Poland.
As the Yonhap agency writes, Friday’s decision by committee members gave “respite” to the Korean defense industry.
Yoon Jae-ok, leader of the ruling People’s Power Party (PPP), warned on Wednesday that if the law is not passed, “the volume of exports will decrease, and this will lead to losses for the nation.”
Research shows that exports to Poland alone generated economic benefits of 127 trillion won and contributed to the creation of 140,000 jobs. jobs
– wrote his party colleague Park Dae-chul on social media on Wednesday after the vote in the subcommittee.
The proposal to increase the capital for Eximbank was not included in this year’s budget, so this year’s contributions will be made in kind
– explained Yoo Dong-soo of the main opposition Democratic Party of Korea.
As for the additional 10 trillion won needed, the government plans to make capital injections gradually over the coming years
– he said.
The amendment will be voted on by the National Assembly during the last session of this term, which will take place on February 29. Since the bill has been approved by the ruling and opposition parties, it is expected to be approved.
tkwl/PAP
Source: wPolityce