BGK signed an agreement with Korean development institutions on guarantee instruments for a minimum amount of USD 5 billion
11 August 2025BGK has signed an agreement on guarantees and credit insurance for a minimum amount of USD 5 billion.
The Korean side is represented by the Export-Import Bank of Korea (K-EXIM) and the Korea Trade Insurance Corporation (K-SURE). Under the agreement, Korean development institutions will provide support in the form of guarantees and insurance for financing that BGK will obtain for the Armed Forces Support Fund, in addition to a certain portion of direct financing. The amount of financing, thanks to The amount of financing, thanks to the KEXIM guarantee and KSURE insurance, will be allocated to the Armed Forces Support Fund and will enable the implementation of the Armament Agency's agreement with Hyundai Rotem.
This is the first time we have signed an agreement on financial support on the date of contract conclusion by the Armament Agency. This confirms the excellent cooperation between all institutions involved, led by the Ministry of National Defense and the Ministry of Finance. This cooperation is primarily aimed at ensuring the proper management of public finances. For this reason, every negotiation is highly complex, requiring time, experience, and a proven reputation. Today's agreement is further proof of the effectiveness of Bank Gospodarstwa Krajowego and its reputation in the defense sector—just a week ago, we were party to a guarantee agreement with the US government. In the interest of economy, we are diversifying our sources of financing in order to optimally support the Armed Forces Support Fund.
Prof. Marta Postuła, First Vice-President of the Management Board of BGK
The Armed Forces Support Fund was established at Bank Gospodarstwa Krajowego pursuant to Article 41(1) of the Homeland Defense Act of March 11, 2022. BGK is also the operator of the Armed Forces Support Fund, based on an agreement signed between BGK and the Minister of National Defense (in accordance with Article 41(5) of the aforementioned Act).