.       FOR IMMEDIATE lfELEASE
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eWorldBank
1818 H Street 1 N.W. 1 Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234




        BANK NEWS RELEASE NO. 81/105                                               May 28, 1981

                                   WORLD BANK PROVIDES $60 MILL!ON LOAN FOR
                                       INDUSTRIAL DEVELOPMENT IN KOREA

            The World Bank has approved a $60 million loan to provide credit for
        promoting industrial development in the Republic of Korea.

             The loan will be made to the government-owned Small and Medium Industry
        Bank (SMlB). SMIB has previously received three loans amounting to $145
        million. This loan is the World Bank's fourth to SMIB.

             The lJan will help cover the foreign exchange requirements of subprojects
        to be financed by SMIB over the next two years. Apart from direct imports, the
        loan will be used by SMIB to finance the foreign exchange components of
        domestically produced capital goods .



•             The small and medium industrial sector plays a vital role in providing
        employment opportunities and in assisting the country's export effort. The
        loan will assist SMIB in fostering the Korean government's efforts to improve
        the competitiveness of the sector through increased capital investment and
        betterment of skills.

             The SMIB was established in 1961 as a government-owned development finance
        institution to promote and assist small and medium industries. It is an
        important source of domestic and foreign currency financing for these industries.

             The World Bank loan to SMIB is guaranteed by the Korean government. It
        is repayable in conformity with the aggregate amortization schedule of SMIB
        subloans and carries 9.6% interest a year.



        NOTE:   Money figures are expressed in U.S. dollar equivalents •




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