Gov't to offer more support for firms to win overseas infrastructure orders
- 5 years ago
정부, 6조2천억 풀어 韓기업 해외 인프라사업 수주 전방위 지원
There are growing concerns for the local economy... mainly due to slowing export growth and grim job figures.
To turn things around, the South Korean government has unveiled new measures to encouarge companies to win more orders to build infrastructure overseas.
Our Ko Roon-hee explains.
To boost the sluggish job market and increase exports, the South Korean government has promised more financial support to encourage companies to win infrastructure and power plant orders in other countries.
The announcement was made in an economic-related ministers meeting on Thursday... chaired by finance minister Hong Nam-ki.
Some of these countries have a high demand for infrastructure but are considered exceptionally risky, with credit ratings at or below B+.
So to mitigate the risk, the government will work with the state-run Export-Import bank to provide some extra financial security.
For instance, in the first half of this year, they will provide support worth 888-point-5 million U.S. dollars,... including loans and guarantees.
The finance ministry added, though, that this process will require laws and regulations to be changed.
The government also vowed to continue its work with related institutions to help companies win orders in less risky countries too.
The Export-Import Bank of Korea and the Korea Trade Insurance Corporation will increase financial support by around 1-point-8 billion U.S. dollars in 2019.
Over the past several decades South Korea has built hundreds of billions of dollars worth of infrastructure in other countries, mainly in the Middle East, but orders have been falling.
Last year's orders, worth around 32 billion dollars, were only about half of the amount five years earlier.
Ko Roon-hee, Arirang News.
There are growing concerns for the local economy... mainly due to slowing export growth and grim job figures.
To turn things around, the South Korean government has unveiled new measures to encouarge companies to win more orders to build infrastructure overseas.
Our Ko Roon-hee explains.
To boost the sluggish job market and increase exports, the South Korean government has promised more financial support to encourage companies to win infrastructure and power plant orders in other countries.
The announcement was made in an economic-related ministers meeting on Thursday... chaired by finance minister Hong Nam-ki.
Some of these countries have a high demand for infrastructure but are considered exceptionally risky, with credit ratings at or below B+.
So to mitigate the risk, the government will work with the state-run Export-Import bank to provide some extra financial security.
For instance, in the first half of this year, they will provide support worth 888-point-5 million U.S. dollars,... including loans and guarantees.
The finance ministry added, though, that this process will require laws and regulations to be changed.
The government also vowed to continue its work with related institutions to help companies win orders in less risky countries too.
The Export-Import Bank of Korea and the Korea Trade Insurance Corporation will increase financial support by around 1-point-8 billion U.S. dollars in 2019.
Over the past several decades South Korea has built hundreds of billions of dollars worth of infrastructure in other countries, mainly in the Middle East, but orders have been falling.
Last year's orders, worth around 32 billion dollars, were only about half of the amount five years earlier.
Ko Roon-hee, Arirang News.