5G Network Export Insurance Premiums Reduced for SMEs... Supporting Overseas Expansion

[Asia Economy Reporter Seulgina Jo] The government has decided to reduce export insurance premiums and extend the trade insurance loan period for small and medium-sized enterprises (SMEs) involved in 5G network equipment and components. This measure aims to support overseas expansion so that the achievements of the world's first 5G commercialization can be extended to related SMEs.

On the morning of the 4th, the Ministry of Science and ICT held a meeting with SMEs in 5G network equipment and components at the Korea Press Center, sharing policies and projects to support overseas expansion.

Since the commercialization of 5G in April last year, it is evaluated that opportunities for industrial growth have been created domestically, with telecom companies increasing network investments based on government support measures and some SMEs achieving high sales through mutual growth. Equipment company A's sales in the third quarter of last year reached 522.1 billion KRW, a 420% increase compared to the same period the previous year. Company B also recorded a 280% sales increase during the same period.

At the meeting, the Ministry of Science and ICT shared policies to expand this trend to all SMEs, including ▲support for collecting local overseas information ▲support for 5G equipment testing and verification ▲preferential support for 5G trade insurance.

Specifically, the Ministry plans to cooperate with KOTRA and the Korea Trade Insurance Corporation to provide information on local companies by inviting overseas buyers, select executing agencies within the first quarter, and provide infrastructure for 5G equipment testing and verification. Additionally, in the first half of the year, the ministry will reduce insurance premiums for 5G equipment export cases and implement preferential trade insurance policies such as extending loan periods.

Heo Seong-wook, Director of Information Security and Network Policy at the Ministry of Science and ICT, stated, “As the export front is the backbone of the Republic of Korea, we will continue to listen to companies’ difficulties and voices from the field so that 5G achievements can be evenly spread and contribute to our economy, and actively support SMEs’ efforts to expand overseas.”

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