The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Kim Yong-hwan, “Korea Eximbank”) announced on January 20 that the Bank opened a new Representative Office in Yangon, the economic center of Myanmar *.

* Yangon was the capital of Myanmar until it was replaced by the current capital Naypyidaw in 2005. To this day, most of the major financial institutions, international organizations, and foreign embassies in Myanmar remain headquartered in Yangon.

The opening ceremony of the Yangon Representative Office was attended by some 100 officials including Korea Eximbank Chairman Kim Yong-hwan, Korean Ambassador to Myanmar Lee Baek-soon, Chief Minister of Yangon U Myint Swe, Deputy Minister of National Planning and Economic Development Daw Lei Lei Thein, Deputy Minister of Livestock, Fishery and Rural Area Development U Aung Myat Oo, Mayor of Yangon U Hla Myint, and Minister of Finance and Revenue Daw San San New.

In his opening remarks, Chairman Kim said, “Myanmar is strategically located at the crossroads between China, India, and ASEAN. Blessed with abundant natural and human resources, it is the last remaining engine of growth in Southeast Asia. Through its Representative Office in Yangon, Korea Eximbank will actively provide financing that combines export credits with EDCF* loans, while making increased effort to develop new ODA projects and to reinforce coordination between loan programs and grants through enhanced cooperation among relevant agencies.”

* The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit. Korea Eximbank currently manages the fund as its trustee.

Chief Minister of Yangon U Myint Swe responded, “The international community is supportive of the democratization and economic reform efforts of the Government of Myanmar. Since the inauguration of the new government in 2011, the U.S., EU, Australia as well as international financial institutions such as the World Bank and ADB resumed support for Myanmar. I am hopeful that the opening of the Korea Eximbank Yangon Representative Office will usher in a new era of economic cooperation between the two countries.”

Korea Eximbank has provided a total of USD 240 million in EDCF loans to Myanmar, including USD 100 million for apower transmission network project and USD 56 million for the an IT infrastructure project.

The Bank also has provided KRW 500 billion in export credit to Korean companies trading with or investing in Myanmar.

Korea Eximbank’s long-term plans regarding Myanmar are to provide USD 1 billion in export credit including direct loans, project financing, and guarantees, as well as USD 500 million in EDCF loans over the next five years (2013-2017).