Seongnam City to Invest 50 Million Won This Year to Support Export Insurance Premiums for SMEs

Seongnam City Hall

[Asia Economy (Seongnam) = Reporter Lee Young-gyu] Seongnam City in Gyeonggi Province will invest 50 million KRW this year to carry out a support project for export insurance premiums for small and medium-sized enterprises (SMEs).

This project supports the subscription fees for insurance products to help SMEs prepare for risks such as failing to collect export transaction payments overseas or suffering operational damage due to delayed payments from importers.

The maximum support amount per company is 1 million KRW.

Companies can use the supported export insurance premiums to subscribe to five types of insurance products operated by the Korea Trade Insurance Corporation, including ▲Export Credit Guarantee (before and after shipment) ▲Short-term Export Insurance (General, SME Plus+) ▲Group Export Insurance.

The pre-shipment Export Credit Guarantee is a product where the Korea Trade Insurance Corporation provides joint guarantees so that companies can obtain loans from financial institutions when they lack funds to procure export goods.

The post-shipment Export Credit Guarantee involves the Korea Trade Insurance Corporation providing joint guarantees when financial institutions purchase export receivables based on shipping documents.

The general short-term export insurance pays losses to companies according to the insured amount and coverage when the exporter does not receive payment from the importer after shipment despite no fault of their own.

The SME Plus+ short-term export insurance pays companies 100% of losses within the liability amount for risks selected by the policyholder, such as importer risk, letter of credit risk, and import country risk.

Group export insurance is an insurance product where Seongnam City acts as the policyholder and SMEs join collectively. Companies can receive insurance payments up to 95% of losses within a limit of 50,000 USD when export payment default risks occur.

Eligible recipients for each export insurance premium support are SMEs with headquarters or factories located in Seongnam City. Applications are accepted through the Korea Trade Insurance Corporation Gyeonggi Southern Branch (031-259-7604) until funds are exhausted.

Seongnam City first introduced the export insurance premium support project in 2018 and has supported a total of 80 million KRW for 156 SMEs over the past two years.

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