Korea Trade Insurance Corp. (K-Sure) announced that it will leverage medium- and long-term financial support to assist domestic companies in participating in Vietnam’s natural gas projects.
K-Sure said on Friday that it signed a memorandum of understanding (MOU) with PetroVietnam (PVN) in Hanoi, Vietnam, the previous day to strengthen strategic cooperation, including support for upcoming projects.
PVN is planning a $12 billion natural gas project that will proceed in three stages: gas field development, pipeline construction and gas-fired power plant building.
K-Sure signed the MOU with PVN to support the participation of engineering, procurement and construction (EPC) companies in the project.
The agreement includes PVN actively allowing the participation of South Korean companies in its projects, with K-Sure providing up to $1 billion in medium- and long-term financing when Korean companies win contracts.
K-Sure explained that considering Vietnam is Korea’s third-largest export destination and of significant strategic importance, this proactive financial support is the first of its kind being extended to an ASEAN country.
K-Sure also plans to support domestic companies in securing business deals by hosting a “K-Sure Vendor Fair” event, where it will invite key PVN officials to Korea to offer one-on-one consultation opportunities with Korean companies.
“We will continue to strengthen strategic cooperative relationships with high-quality clients to ensure that our companies are in an advantageous position in the competitive bidding for large-scale power generation projects expected to be commissioned in Vietnam as part of its carbon neutrality goals,” said Korea Trade Insurance Corp.’s Chairman Jang Youngjin.
By Jae-Won Park
wonderful@hankyung.com
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