New Album, Business Agreement Signed with Daegu City on Accounts Receivable Insurance

[Asia Economy Reporter Kwon Haeyoung] The Korea Credit Guarantee Fund (KODIT) signed a "Trade Credit Insurance Premium Support Agreement" on the 21st with Daegu Metropolitan City to support small and medium-sized enterprises (SMEs) located in Daegu that have been affected by the spread of the novel coronavirus disease (COVID-19) in overcoming the crisis and stabilizing their management.

Under this agreement, KODIT will offer a 10% discount on trade credit insurance premiums, and Daegu City will contribute 200 million KRW to KODIT to support 50% of the final calculated trade credit insurance premium, up to a limit of 2.5 million KRW per company.

The support targets 628 SMEs located in Daegu engaged in regional key industries and new growth engine industries such as automobile parts, machinery and metal roots, textile fashion, ICT convergence, robotics, energy, water, advanced medical care, and ophthalmology.

Trade credit insurance is a public insurance system operated by KODIT under the commission of the Ministry of SMEs and Startups to support SMEs. 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.

A KODIT official stated, "Through this agreement, we expect to prevent a chain bankruptcy of SMEs located in Daegu who are struggling due to the spread of COVID-19 and to help the recovery of the local economy," adding, "We will do our best to provide more active support for the prompt stabilization of the affected companies' management."

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