Under a network loan system, shipbuilders are recorded as debtors, but actual loan funds are provided to small- and medium-sized cooperative firms. If collaborative firm A supplies raw materials to shipbuilder B, EXIM Bank will grant supply payments to collaborative firm A, but shipbuilder B will be logged as a borrower in an account book.
President Kim said: “With an immediate payment settlement by EXIM Bank in replacement of debtors including conglomerates in the near future, cash-strapped cooperative companies are predicted to breathe easier.”