Mubo Forms New Coronavirus TF... Supporting Liquidity and Insurance Premium Discounts for Chinese Export Companies

[Asia Economy Reporter Kim Bo-kyung] The Korea Trade Insurance Corporation announced on the 6th that it has formed a dedicated TF team and is implementing emergency trade insurance support to minimize damage to export companies caused by the spread of the novel coronavirus infection (Wuhan pneumonia).

This measure was prepared to establish a proactive support system in response to the decrease in trade with China and the economic downturn caused by the spread of the novel coronavirus, and to minimize damage to export companies dealing with China.

Korea Trade Insurance Corporation formed the 'Novel Coronavirus Response TF Team' on the 5th to handle the current situation and activated an integrated support system for monitoring damage and providing emergency trade insurance support.

The TF team includes core sales organizations and all overseas branches in China such as Beijing, Shanghai, and Chengdu to ensure prompt and accurate support tailored to corporate needs, with the head of the Small and Medium Business Headquarters serving as the TF team leader overseeing the operations.

This emergency support targets small and medium-sized enterprises (SMEs) and mid-sized companies that hold insurance limits (short-term export insurance) for transactions with Chinese buyers or whose export ratio to China exceeded 30% last year (or in the most recent year). The support focuses on ▲ liquidity support ▲ premium discounts ▲ rapid compensation ▲ export diversification support.

First, export credit guarantees used as collateral for financial institution loans will be extended without reduction at maturity to support liquidity for SMEs, and rapid support will be provided if there is new demand.

Mid-sized companies will receive a 30% discount on premiums, and SMEs will receive a 35% discount. If the collection of payment for insured transactions is delayed beyond the original maturity, additional premiums due to maturity extension will also be waived.

Dedicated personnel for compensation review will be assigned to shorten the insurance payment period caused by non-payment from Chinese buyers from 2 months to within 1 month, and advance payments of up to 80% will be allowed even before the compensation review is completed. To discover new import sources, five free credit investigations will be provided, and insurance limits for buyers outside China will be preferentially doubled.

Lee In-ho, president of the Korea Trade Insurance Corporation, said, "There are concerns about the impact of the novel coronavirus spread not only on daily life but also on Korea's export industry," adding, "We will proactively reduce the shock that export companies may face and work with the Ministry of Trade, Industry and Energy and the government to fully support overcoming this critical period."

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