November 25, 2024

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Eximbank Chair Yoon Hee-sung (right) and Jigar Shah, a loan programs office director of the US Department of Energy, pose for a photo during a MOU signing ceremony held in Washington, DC, Wednesday. (Export-Import Bank of Korea)

The state-run Export-Import Bank of Korea said Thursday that it has inked a memorandum of understanding with the US Department of Energy to bolster their partnership in supporting the Korea-US supply chain and sustainable energy projects between the two nations.

This marks the first time Eximbank has entered into such a partnership agreement with a US government agency, underscoring the growing ties and shared interests between the two nations in the realms of sustainable development and clean energy, the bank said.

The signing ceremony was held on Wednesday in Washington, DC, with Eximbank Chair Yoon Hee-sung and Jigar Shah, director of the loan programs office at the US energy department, in attendance.

Amidst the reconfiguration of the global supply chain, the agreement commits to mutual efforts in the sustainability sector, targeting the 2050 carbon neutrality goal across various fields, including secondary batteries, electric vehicles, core minerals, renewable energy, bioenergy, and more.

The commitment aligns with significant financial engagement between the two countries, where Korea's exports to the US surged by 56.12 percent from $74,115 million in 2020 to $115,710 million in 2023, alongside a 42.88 percent increase in Korean direct investment in the US, rising from $15,206 million in 2020 to $21,726 million in 2023.

This upward trend in financial engagement between Korea and the US lays a solid foundation for policy financing partnerships between Eximbank and the US, further accelerating the export momentum and fortifying supply chain cooperation between the two countries.

In alignment with these objectives, both institutions are committed to offering competitive financing for Korean companies embarking on projects in the US within primary sectors such as EVs, solar power, hydrogen, secondary batteries, and other innovative energy domains.

To facilitate this, a working group is set to be established soon, with plans to engage in comprehensive information exchange, project identification and the provision of joint financial support.

"The MOU will signify the response to the global supply chain's reorganization and the expansion of economic cooperation between Korea and the US," Yoon, the Eximbank chair, said during the signing event.

"We will expand financing support for Korean firms, especially those specialized in eco-friendly energy such as solar power and hydrogen, to enhance their competitiveness in overseas markets."

Shah of the US Department of Energy also showed high expectations for the new partnership, citing Eximbank's extensive experience in supporting diverse industrial projects.

Last December, Eximbank signed a separate agreement with the US Export-Import Bank to spur economic cooperation between the two nations.

By Park Se-ra (serap1005@heraldcorp.com)