The Korea Trade Insurance Corporation (K-SURE) will launch customized guarantees for small Korean exporters in collaboration with the financial sector.
K-SURE announced on Mar. 2 that it signed an agreement with Shinhan Bank and will begin providing non-face-to-face direct guarantee support for small exporters starting in March.
The direct guarantee is a non-face-to-face export finance guarantee product that allows users to access the entire process from application to loan without visiting a branch. Its advantages include simplified screening and rapid processing.
K-SURE has been collaborating with Shinhan Bank since December 2020 when the direct guarantee was first launched. This revision of the agreement has significantly lowered barriers to using the guarantee.
The agreement includes provisions such as easing usage requirements including export performance, preferential limits for excellent customers and support for guarantee fees.
In particular, K-SURE is strengthening support for small export companies by expanding the recognition of e-commerce export performance.
“K-SURE is continuously striving to expand the supply of productive finance based on public-private collaboration with banks and large corporations and to eliminate blind spots in finance,” K-SURE President Jang Young-jin said.
“We will continue to review the entire trade insurance system to ensure that Korean companies can easily and conveniently utilize export finance.”
Meanwhile, K-SURE will provide a record 275 trillion won in total trade insurance this year.
This figure eclipses last year’s record high of 268 trillion won.
In particular, K-SURE has decided to allocate 114 trillion won of this amount to small and medium-sized enterprises (SMEs) and middle-sized enterprises which form the backbone of the Korean economy.
It will also actively support Korean companies’ investments in the U.S. following the Korea-U.S. tariff agreement and support export diversification to overcome trade crises.
It will also support strategic future industries such as defense, artificial intelligence, and renewable energy.
Emergency Support for Companies Exporting Goods to Middle East
K-SURE announced on Mar. 11 that it assembled the Iran Crisis Emergency Response Task Force and prepared emergency support measures for Korean export companies to minimize damage for exporters caused by the Iran crisis and the spread of the conflict in the Middle East.
To ensure a swift and effective response, the K-SURE president will directly manage the task force.
Three vice presidents will be in charge of damage support, risk assessment, and policy and investigation, respectively.
The task force will cover the real-time reception of damages and difficulties, emergency fund provision, and government policy support for companies exporting to seven countries (Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain, Iraq, and Iran) near the Strait of Hormuz and Israel and projects in the Middle East.
To support the liquidity of affected companies, the plan is to increase trade financing limits and durations and provide prompt compensation in the event of an insured incident.
Credit guarantee limits are increased by up to 1.5 times, and guarantees are extended without reduction upon maturity.
To diversify export trading partners, overseas credit investigation services are provided free of charge, and customized consulting is supported for each company.
Promotion of Cooperation with KOTRA
K-SURE announced that it recently held its first regular meeting with the Korea Trade-Investment Promotion Agency (KOTRA) at its headquarters in Jongno-gu, Seoul.
The meeting discussed cooperation plans to provide support for the exports of small and medium-sized enterprises that lack the capacity to respond to changes in international trade environments.
These plans involve integrating KOTRA’s overseas network with K-SURE’s trade insurance capabilities.
To help novice exporters grow into global powerhouses, KOTRA and K-SURE will strengthen connections between their SME development programs and enhance cooperation throughout the entire export process, such as providing preferential trade insurance to companies participating in KOTRA’s various support programs for SMEs.
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