South Korea’s official export credit agency Export-Import Bank of Korea said Thursday it will expand its credit policy to be more inclusive in financing new exporters with low credit ratings.

According to Eximbank, it has allocated a total of 20 billion won ($17 million), with individual raw material exporters funded up to 3 billion won.

Also, firms in the innovative growth industry -- such as the energy, information and communications technology, and future transportation and materials sector -- will be provided an additional 1 billion won, with an individual transaction limit of 2 billion won.

This policy will only apply to new entrants in the market who exported less than $3 million the previous year, after an evaluation of the company’s transaction stability and capability.

New exporters with contracts will be able to omit credit evaluations, Eximbank explained.

With Korea’s exports on a continuous decline, there are currently various measures being implemented to support local exporters.

The Korea SMEs and Startup Agency has allocated 180 billion won to support new exporters, while the Korea Trade Insurance Corp. has expanded its special guarantee for contract-only credit to 500 billion won to support SMEs with temporarily low credit ratings.

Eximbank will follow suit with its funding toward new exporters, especially those that are facing financial difficulties after contracts are made, the agency said.

By Cho Hyee-su (chohyeesu@heraldcorp.com)