South Korean Government set up a special account worth $887 million (1 trillion KRW) within The Export-Import Bank of Korea to help South Korean companies win infrastructure projects from dangerous countries. It is going to strengthen its support by newly establishing Customs Clearance Act and prepare foundation within customs clearance so that future technologies such as Big Data can be utilized.
South Korean Government held a meeting at Government Complex-Seoul with Minister Hong Nam-ki of Ministry of Economy and Finance (MOEF) as the chair and discussed about ways to improve number of foreign orders and establishment of new Customs Clearance Act.
It prepared supporting mechanisms after considering difficulties faced by relevant industries regarding limitation on financial procurement, lack of roles by public agencies, and lack of support system from pan government.
It is going to set up a special account to support South Korean companies with winning infrastructure projects from dangerous countries such as Iraq. It is going to set up a fund along with The Export-Import Bank of Korea. It is also going to modify relevant laws to prepare grounds that are necessary to operate and manage a special account.
“Because it is difficult to provide support to those that are planning to win orders from dangerous countries just through an ordinary account, we set up a special account.” said Lee Hyung-ryeol, who is the head of MOEF’s Foreign Economy Department. “South Korean Government and The Export-Import Bank of Korea will set up a fund together by lowering amount of distribution from The Export-Import Bank of Korea to South Korean Government and incorporating corresponding amount to the special account.”
South Korean Government is going to invest $1.77 billion (2 trillion KRW) of political funds into The Export-Import Bank of Korea and Korea Trade Insurance Corporation to provide support for infrastructure projects from dangerous countries such as Turkey and Uzbekistan. It is going to open up $88.7 million (100 billion KRW) of South Korea-Asian fund and another $88.7 million South Korea-Eurasian fund and start providing its support by end of this year.
It is going to request a ‘preliminary consulting’ from The Board of Audit and Inspection of Korea after going through votes from Foreign Contract Committee to reduce amount of pressure from those within public agencies that are responsible for audits.
“We are going to go through votes from foreign economic ministers whenever it is necessary to have ministers from competent departments exempt responsibilities of occurrence of loss from foreign investments made by public agencies.” said MOEF.
South Korean Government is going to form ‘Team Korea’ that is comprised of prime minister, deputy prime minister, and others to support South Korean companies with foreign contracts from every angle. It is going to establish strategies for foreign contracts at the beginning of a year and share different department’s plans for supporting companies with foreign contracts.
Along with this, South Korean Government also decided to revise its current Customs Clearance Act as it has limits on regulating ‘social safety’ and ‘support for exportation and importation’.
It is going to stipulate improvement in values of social safety and support for exportation and importation and prepare reasonable regulation system to control dangerous goods. It is going to materialize customs clearance regulation for e-commerce and prepare grounds for supporting exportation companies. It is going to prepare regulations for risk management and prepare grounds for using future technologies such as Big Data, AI (Artificial Intelligence), and drone.
“We are going to prepare necessary bills by end of this year and push for legislation in 2020.” said South Korean Government.
Staff Reporter Yoo, Seonil | ysi@etnews.com