Seoul Guarantee, 44% Reduction in Defense Industry Guarantee Insurance
Seoul Guarantee Insurance announced on the 29th that it signed a business agreement with the Defense Acquisition Program Administration at the Government Complex Gwacheon to support guarantee services for small and medium-sized enterprises in the defense acquisition sector.
View original image[Asia Economy Reporter Oh Hyung-gil] Seoul Guarantee Insurance announced on the 29th that it signed a business agreement with the Defense Acquisition Program Administration (DAPA) at the Government Complex Gwacheon to support guarantee services for small and medium-sized enterprises (SMEs) in the defense acquisition sector.
Accordingly, Seoul Guarantee will reduce the insurance premiums for performance bonds required when small and medium-sized partner companies related to the defense industry receive initial and interim payments by 44%.
Partner companies designated as defense contractors under the Defense Acquisition Program Act and those entering into subcontracting contracts for defense materials are expected to see a significant reduction in their existing guarantee fee burdens.
It is anticipated that if 1,475 small and medium-sized partner companies issue advance payment guarantees worth approximately 1 trillion KRW annually, insurance premiums will be reduced by 7.6 billion KRW.
Additionally, Seoul Guarantee will offer a 10% discount on performance bond insurance premiums to 148 SMEs certified under the Defense Quality Management System (DQMS) by DAPA and will expand the guarantee limit per company up to 3 billion KRW.
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Kim Sang-taek, CEO of Seoul Guarantee, stated, "We have taken the lead in supporting guarantees for SMEs such as newly established companies and re-challenging businesses in cooperation with government ministries including the Ministry of SMEs and Startups, the Korean Intellectual Property Office, and the Public Procurement Service." He added, "We will continue to expand guarantee support for small and medium-sized partner companies working hard to strengthen national defense capabilities."
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