Korea Development Bank (KDB) and The Export-Import Bank of Korea said on the 16th they will provide $3 billion (4.4211 trillion won) to Korea National Oil Corporation (KNOC). The aim is to build a support network to preemptively respond to the energy security crisis.
KDB plans to provide $1.5 billion (2.2108 trillion won) for import settlement funds to purchase oil, foreign currency operating funds to repay overseas public bonds, facility funds to refurbish storage infrastructure, and a credit line to respond to short-term liquidity. KDB completed all procedures necessary for drawing down the funds on the same day.
The support is a follow-up measure to the "emergency meeting on responding to the energy crisis" held on the 27th of last month. The Financial Services Commission and the refining and petrochemical industries held a meeting on the 7th and finalized the support plan on the 9th.
KDB said, "With this financial support, we will fulfill our role as a policy finance institution so that the oil corporation can secure oil smoothly and help it navigate the energy security crisis."