Loans Increase for Domestic Trade Financing
It is reported that local banks try to increase the number of loans for financing trade to corporations that focus on exporting, with low interest rates. According to a domestic financing source yesterday, six major domestic banks (the Industrial Bank of Korea, Korea Exchange Bank, Woori Bank, Shinhan Bank, Hana Bank, and Kookmin Bank) financed over 8 trillion and 780 billion won to domestic corporations, up 1 trillion and 150 billion won compared to last year.
The source said it is surveyed that Woori Bank has extended its loans by 1 trillion and 460 billion won (up 360 billion won), and the Industrial Bank of Korea and Korea Exchange Bank each loaned 2 trillion won (up 220 billion won). Some financial experts explain that this swift rise in trade financing is because of domestic banks’ marketing strategies for small and mid-sized companies.
Another reason is because the companies, with the support of a trade loan, can easily get subordinate financing benefits from their banks, including credit card loans and general loans. One other reason, financing experts point out, is that the Bank of Korea also plays a key role in leading this competition of trade financing by supporting banks with a low interest rate of 2.5%.
The interest rate of loans for financing trade is 1% lower than the rate for other loans. A source from a local bank said, “This trade financing loan system has multidirectional support from other government institutions,” adding, “Because export companies have good credit ratings, most banks offer them loans at low interest, expecting further win-win situations.”
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 / 입력시간: 2006. 07.29. 09:08
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