USDA OFFERS KOREA $1 BILLION IN GSM-102 CREDIT GUARANTEES
                                                                       
                                                               
                                            Release No. 0452.97
                                                               
                                   Laura Trivers (202) 720-4623
                                              ltrivers@usda.gov
                                Lynn Goldsbrough (202) 720-3930
                                       goldsbrough@fas.usda.gov

USDA OFFERS KOREA $1 BILLION IN GSM-102 CREDIT GUARANTEES

     WASHINGTON, Dec. 22, 1997--Agriculture Secretary Dan Glickman today
announced that USDA is offering Korea $1 billion in GSM-102 export credit
guarantees for fiscal year 1998.

     "We want to be responsive to Korea's recent request for credit
guarantees," said Glickman.  "Korea is one of the largest markets for U.S.
agricultural exports.  We have confidence in this market on a long-term
basis and are pleased to respond positively to the Korean Government's
request."

     Glickman said under the commercial GSM-102 program, USDA guarantees
private export financing for American agricultural products.  This
commercial GSM-102 program leverages financing from the private sector to
support and encourage U.S. agricultural exports to major foreign markets.

     GSM-102 export credit guarantees, administered through the USDA's
Commodity Credit Corporation, underwrite credit extended by the private
banking sector in the United States to approved foreign banks using dollar-denominated letters of credit to pay for food and agricultural products sold
to foreign buyers on credit terms of up to three years.  Because payment is
guaranteed, financial institutions in the United States can offer
competitive credit terms to foreign banks.

     In fiscal 1997, the United States exported $3.3 billion worth of U.S.
agricultural products to Korea.  The top items were coarse grains ($757
million), hides and skins ($637 million), soybeans ($410 million), red meats
($320 million), forest products ($295 million), and wheat ($252 million). 
Exports of consumer-ready items totaled a record $751 million.

     Glickman said that USDA will work with the Korean Government to
complete all necessary requirements for this GSM-102 program.  Operational
details will be announced later.

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