Korean credit agency to provide $187bn in support to bolster exports

[Courtesy of K-SURE]

The Korea Trade Insurance Corp. (K-SURE), an export credit agency, will provide the largest-ever trade insurance and financial support worth 250 trillion won ($187 billion) to achieve the government‘s target of $700 billion in exports this year.

According to sources from the government and the trade industry on Wednesday, K-SURE plans to provide a total of 250 trillion won in support for short-term and medium- to long-term export insurance, export credit guarantees, and exchange rate fluctuation insurance this year.

The plan comes after Jang Young-jin, former first vice minister of Trade, Industry and Energy took office as its new president.

Short-term export insurance covers the risk of exporters not receiving payment from importers after exporting goods.

If an insured export company fails to collect payment, K-SURE will first pay out insurance benefits and then initiate debt collection. Of the planned 250 trillion won for this year, 230 trillion won is allocated for short-term export insurance support.

K-SURE also plans to provide financial support to Korean companies participating in overseas mega projects such as nuclear power plants, defense industries, and plants this year.

K-SURE is also expected to provide SMEs with export credit guarantees worth 5 trillion won this year.

“Competitive financial support is becoming a key factor in winning contracts and export competitiveness,” said a K-SURE official.