Hana Bank Launches Export Credit Guarantee with Korea Trade Insurance Corp.
Launches one-dollar foreign currency installment savings product that can start from small amount
Chairman Kim Jung-tai of Hana Financial Group (Photos: Hana Financial Group)
Hana Bank said in early September that it will introduce an export credit guarantee product with the Korea Trade Insurance Corp. (K-Sure) beginning immediately to boost the export power of Korean companies suffering from the spread of the COVID-19 virus.
An export credit guarantee is a guarantee-secured product that can be used if a bank purchases export bonds from exporting companies to help exporting companies secure liquidity.
This export credit guarantee is largely characterized by the fact that exporters can provide collateral for the purchase of export bonds from multiple importers with a certificate of guarantee, eliminating the inconvenience of having to issue separate guarantees for importers.
Hana Bank will provide additional financial benefits through additional reductions of exchange fees and support guarantee fees for guarantee certificates along with cooperation between the two companies to enhance small and medium-sized exporting companies’ export power by introducing the export credit guarantee through a business agreement with Korea Trade Insurance Corporation.
First of all, if a company applying for export credit guarantees designates a Hana Bank account as a payment collection account, Hana Bank will fully pay up to 10 million won in a guarantee fee to the K-Sure per company.
The government will also provide an additional 0.5 percent reduction in exchange commission for the purchase of export receivables through the guarantee.
The K-Sure also enhanced user convenience so that exporting companies will be able to easily predict guarantee limits upon applications by disclosing criteria on setting guarantee limits to the bank and customers.
“We will work together as a reliable partner to provide practical help in stabilizing small and medium-sized Korean exporters’ management by providing liquidity to them suffering from the prolonged pandemic in a timely manner,” said an official of Hana Bank’s Foreign Exchange Business Group.
Hana Bank launched a one-dollar foreign currency installment savings product that can start from a small amount. A customer can pay freely from US$1 to US$1,000.
In the meantime, Hana Bank launched a one-dollar foreign currency installment savings product that can start from a small amount and offers automatic transfer and exchange rate notification services to empower customers to manage their assets.
The product was developed as demand for U.S. dollars, a global key currency, and a need to transfer them directly to stock accounts in connection with overseas stock investments.
The One-Dollar Foreign Currency Installment Savings Product, which can start from $1, requires six months as a subscription period, and allows free payment of up to US$1,000 per month, and can be withdrawn up to five times.
In addition, it is possible to withdraw money in dollar bills without a fee just one month after signing up. Customers can enjoy smart asset management with an exchange rate notification function that informs the exchange rate set by the customers.
A person can open one account only, and the interest rate will be that set by the Bank of Korea, but an additional 0.10 percent annual rate will be provided when subscribing by March 2, 2021 as an event.
To commemorate the launch of the product, Hana Bank will set aside US$1 as congratulatory money for joining regardless of the amount of a subscription and provide up to 3,000 Hana Money points through Hana Members, an integrated membership program of the Hana Financial Group, if a customer pays money for installment savings through an automatic transfer.
The One-Dollar Foreign Currency Installment Savings Product will be provided so that customers will be able to use various services at partner companies by utilizing an application programming interface (API) through partnerships with external companies.