S Korea's Eximbank in JV to develop Panama copper mine
Wednesday, June 30 2010 @ 11:56 AM UTC
Contributed by: Don Winner
Editor's Comment: Ah, so that's it. Please go back, read that article again, and look for the words "state run." The Eximbank is basically like the National Bank of South Korea, basically an arm or offshoot of the Government of the Republic of Korea. The same thing goes for the Korea Resources Corp. and the Korea Export Insurance Corp. The President of Korea came to Panama because the government of Korea is going to be up to their eyeballs in this copper mine project, not just privately owned Korean companies. The business environment is much different in Asia - it's very common for there to be a tight connection between big (huge) companies and the governments of the countries where they are based. It's a cultural difference more than anything else. In the US and Western societies there's a tendency to frown upon such close joint ventures. Well, except in cases when the government steps in to keep a company from failing. Anyway, as expected Inmet's copper deal is a go. This is a massive good news story for Panama, strategically speaking. The environmentalists won't like it very much, but that's to be expected.