On Jan. 24, SK CB revised rules re foreign loans to export companies.
SK CB revised the Detailed regulations on handling of foreign exchange transactions.
Follows SK GVT, SK FSC Dec. 2024 updated on easing regulations, see #238136.
Overview of Revisions
Define the term export companies as companies engaged in exports under article 2 of the Enforcement decree of the foreign trade act; foreign currency loans for export companies' domestic facility funds by foreign exchange banks are permitted.
However, small merchants more likely to be exposed to currency risks are excluded from residents permitted to take a foreign currency loans for purposes in KRW.
Foreign exchange business handling institutions other than foreign exchange banks are not permitted to offer foreign currency loans for export firms' domestic facility funds.
Loans to individual export companies can be made within the limit of export performance for the past year/export performance to be achieved in the relevant year.
Effectiveness
The revised detailed regulations will be effective from Feb. 28, 2025.
