SEOUL, April 4 (Yonhap) -- South Korea's state-run policy lender Korea Finance Corp. said Thursday it has signed a business tie-up agreement with a Japanese banking giant in a bid to help local firms finance their overseas projects.
The memorandum of understanding (MOU) with Sumitomo Mitsui Banking Corp. calls for offering financial support to Korean firms doing business abroad by providing them with short- and long-term loans, the KoFC said.
The two institutions will also join hands in providing advisory services for overseas projects and strengthen bilateral personnel exchanges, the state lender said.
Sumitomo Mitsui Banking, the third-largest in Japan and the world's No. 16 banking group by assets, has operations in Asia, North America and the Middle East.
"The tie-up accord will enable us to actively meet the needs of Korean companies engaging in overseas business," a KoFC official said. "Cooperation with Japanese financial institutions has become more important as the role of European banks has weakened due to the eurozone debt crisis."
The KoFC, set up by the former Lee Myung-bak administration in 2009, mostly caters to small and medium enterprises or bigger companies with growth potential that are more than three years old.
In its 2013 plan released early this year, the policy lender said it plans to extend US$10 billion in loans to support local firms' offshore business.
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