An amendment to the law governing the capital threshold of the Korea Eximbank is advancing, aiming to bolster financing for export contracts with Poland. A vote in the National Assembly is set for February 29, following approval by the Planning and Finance Commission on Friday.
The proposal would raise Eximbank’s equity from 15 trillion won to 25 trillion won, roughly translating from PLN 45 billion to 75 billion. The goal is to widen the bank’s ability to fund export deals, including defense-related shipments to Poland.
Per Yonhap, the committee’s Friday decision created temporary relief for the Korean defense sector, signaling stronger government backing for export activity in this domain.
The leader of the ruling People’s Power Party, Yoon Jae-ok, warned on Wednesday that failure to pass the law could curb export volumes and hurt national economic interests.
Analysts note that exports to Poland have historically yielded substantial economic benefits, contributing to significant value and supporting tens of thousands of jobs. A prominent party member emphasized this impact on social media following the subcommittee vote, highlighting the broader positive effects of the Polish market for Korea’s exporters.
The plan to lift Eximbank’s capital was not included in this year’s budget, meaning the increases would come through in-kind contributions rather than immediate cash injections. Officials argue this method aligns with fiscal planning while expanding lending capacity over time.
To cover the additional 10 trillion won, government representatives anticipate a phased capital infusion in the coming years, designed to maintain financial stability while progressively expanding support for export volumes.
The amendment is scheduled for consideration in the National Assembly during the final session of the current term, on February 29. With backing from both ruling and opposition parties, observers expect approval, signaling a united stance on strengthening Korea’s export financing framework and deepening trade ties with Poland.
In summary, the proposed increase in Eximbank’s capital is presented as a strategic move to expand export financing, reduce bottlenecks in contract execution, and reinforce Korea’s economic resilience through essential international trade relationships.