The National Assembly of South Korea has approved an amendment to the law that will increase the capital of the Export-Import Bank of Korea (Eximbank) to support the export of military equipment.
This was reported by The Korea Times.
Primarily, the increase in the limit will enable the continuation of previously prepared contracts with Poland for the export of Korean weapons.
According to the Assembly's data, the bill to raise the maximum capital limit of the Eximbank was approved by the subcommittee of the National Assembly's Strategy and Finance Committee.
Thus, the total capital of the bank has increased from $11.2 billion to $18.7 billion, which will enable the continued supply of equipment to Poland on a large scale.
Representatives of the bank reported that the funding limit had been identified as the main obstacle to South Korea's second defense deal with Poland.
During the first-round contracts signed between South Korea and Poland in 2022, the Eximbank allocated $4.4 billion to Poland, equivalent to 40 percent of its capital.
"This legislative advancement has already brought considerable relief to us. We found ourselves in a pressing situation, where the Polish prime minister personally called for action from the Korean government, and even our eliminated competitors showed a keen interest," Rep. Park Dae-chul of the ruling People Power Party said in his Facebook posting.
