Korea Trade Insurance Corp. (K-SURE) is accelerating efforts to cope with a broad-based supply chain crisis and support “K-service” exports with the goal of offering trade insurance support worth 275 trillion won this year.
The total is an increase from the largest-ever trade insurance support worth 268 trillion won, offered last year.
K-SURE said on June 18 that it is taking preemptive steps to cope with a broad supply chain crisis.
As naphtha, a core raw material for petrochemical products, was in short supply in the wake of the Strait of Hormuz blockade in March, K-SURE built a joint support system with policy finance institutions and 17 commercial banks and swiftly offered import insurance worth $50 million for the opening of letters of credits for Yeochun NCC.
The corporation also lowered supply chain risks by raising the import insurance cap for the petrochemical industry through cooperation with foreign banks.
In April, K-SURE came up with special support steps, including offering 2 trillion won to cope with the Middle East situation. The corporation took steps, like raising the import insurance cap, a 50 percent discount on insurance premiums for SMESs.
Demand is on the rise for global insurance to support financial liquidity of overseas incorporated entities.
Global sales insurance, in which banks buy accounts receivable from overseas incorporated entities based on insurance policies, is a win-wind model in which overseas incorporated entities are enabled to secure operating funds, and banks see their BIS rate improve.
K-SURE supplied about $30 million until the end of 2025 since it made its debut in February 2025, and the corporation plans to provide such support to $300 million, a 10-fold jump, this year.
K-SURE plans to come up with new insurance products to secure resources through overseas incorporated entities.
K-SURE President Jang Young-jin said, “Amid continued trade environment uncertainties, such as the restructuring of global supply chains and the spreading of ethnocentrism, K-SURE will mobilized an omni-directional financing safety network encompassing the secure of major resources, service exports and the easing of financial difficulties overseas incorporated entities experience.”
K-SURE Issues Refund Guarantees Worth 70 Billion Won to SME Shipbuilders
Korea Trade Insurance Corp. said on June 4 the corporation issued refund guarantees worth about 70 billion won to help Korean SME shipbuilders land orders.
The latest support is designed to ease the financial burden for SME shipbuilders grappling with global shipping turmoil and steep global competition to win orders.
The government and K-SURE’s securing additional funding effectively expands the scope of beneficiaries to SME shipbuilders, as an example of productive financing in raising industries’ financial access.
For an instance, Korea Yanase found it difficult to land new orders due to the limitations on the issuance of refund guarantees by the financial industry, but the company has been building ships on the back of support worth $46 million K-SURE extended over two occasions.
K-SURE also issued advance payment bonds (AD-Bond) worth $450,000 to KJ International, a shipbuilding raw material company, to support exports to Indonesia.
The initiative is part of efforts to expand financial support to the whole of the shipbuilding supply chain network.
K-SURE President Jang Young-jin said, “SME shipbuilders and raw material and equipment suppliers play a pivotal role to maintain the Korean shipbuilding supply chain networks to reinvigorate the local economy, and we will not spare efforts to provide trade insurance support, such as special support for refund guarantees.”
_제3회 은행나무포럼 제3회 은행나무포럼.jpg)
