Mubo Provides 7.1 Billion Won Support to SMEs' Overseas Subsidiaries Facing 'Shutdown'

"100 Billion Won Support Until Year-End"

Lee In-ho, President of the Korea Trade Insurance Corporation. (Photo by Korea Trade Insurance Corporation)

[Asia Economy Reporter Moon Chaeseok] Korea Trade Insurance Corporation (K-SURE) has officially started supporting small and medium-sized enterprises (SMEs) and mid-sized companies that have expanded overseas together with large corporations.

On the 26th, K-SURE announced that it provided 7.1 billion KRW this year for the first time to four overseas subsidiaries of SMEs and mid-sized companies to normalize key industries such as automobiles and smartphones. It plans to support a total of 100 billion KRW by the end of this year.

Liquidity support for overseas subsidiaries was confirmed at the 4th Emergency Economic Meeting and introduced as a follow-up measure to the government's 'Export Vitality Enhancement Plan.' The purpose is to restart overseas factories of SMEs that were shut down temporarily due to the novel coronavirus infection (COVID-19) and protect the ecosystem of key industries.

K-SURE first supplied 6.3 billion KRW to three SMEs and mid-sized companies producing automobile parts that entered the US, Poland, and India together with domestic finished car manufacturers.

Certain parts used in finished cars are exclusively supplied by SMEs and mid-sized companies that have entered the local market alongside the finished car manufacturers. Stable parts supply is essential to normalize finished car production.

K-SURE also provided about 800 million KRW to an SME producing core mobile phone components at a local subsidiary in India as a first-tier partner of a domestic IT large corporation.

This support was made possible through cooperation with domestic financial institutions such as Shinhan Bank and KEB Hana Bank's overseas branches.

According to the business agreement signed between K-SURE and Shinhan Bank on the 10th of last month, Shinhan Bank recommended two companies in need of funds through its US and European sales networks.

K-SURE shortened the loan screening period, which generally takes 2 to 3 months, to within one month.

In cooperation with KEB Hana Bank, K-SURE also supported two overseas subsidiaries of SMEs and mid-sized companies located in India.

Lee In-ho, President of K-SURE, stated, "We will do our best to provide financial support so that our companies' global supply chains can normalize early and respond quickly to gradual demand recovery."

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