New Album Partners with Incheon City for SME 'Accounts Receivable Insurance Support Agreement'

[Asia Economy Reporter Kwon Haeyoung] On the 14th, the Korea Credit Guarantee Fund (KODIT) signed a 'Trade Credit Insurance Support Business Agreement' with Incheon Metropolitan City and Incheon Technopark at Incheon City Hall to support the management stability and growth of local small and medium-sized enterprises (SMEs).

Under this agreement, Incheon City will contribute 1 billion KRW as insurance premium support funds to KODIT, supporting 80% of the trade credit insurance premiums borne by companies, up to a limit of 5 million KRW per company. KODIT will offer a 10% discount on the insurance premiums. Incheon Technopark plans to support business promotion and consultations to activate the subscription of trade credit insurance among local SMEs.

The support targets are SMEs that have factories or business sites in Incheon City and belong to industries eligible for Incheon City's management stabilization fund support.

Trade credit insurance is a public insurance system operated by KODIT under the commission of the Ministry of SMEs and Startups to support small and medium enterprises. When an insured SME makes sales on credit to a client and fails to collect the payment, KODIT compensates up to 80% of the loss incurred.

Yoon Daehee, Chairman of KODIT, said, "We expect this agreement to be a good example of local governments supporting local SMEs and bringing great vitality to the regional economy," adding, "KODIT will also do its best to expand its role as a management safety net by actively supporting market development to prevent chain bankruptcies of SMEs and to lead inclusive growth."

This content was produced with the assistance of AI translation services.