Shin Yong Bo Jeung Ki Geum Signs Accounts Receivable Insurance Business Agreement with Seoul City

New Bonds, 10% Discount on Accounts Receivable Insurance Premiums
Seoul City Supports 50% of the Final Calculated Accounts Receivable Insurance Premiums

[Asia Economy Reporter Ki Ha-young] The Korea Credit Guarantee Fund (KODIT) announced on the 22nd that it has signed a 'Trade Credit Insurance Premium Support Business Agreement' with the Seoul Metropolitan Government and the Seoul Business Agency. This is to support the crisis recovery and business stability of small and medium-sized enterprises (SMEs) located in Seoul due to the prolonged COVID-19 pandemic.

Under this agreement, KODIT will offer a 10% discount on trade credit insurance premiums, and the Seoul Metropolitan Government will contribute 500 million KRW to KODIT through the Seoul Business Agency to support 50% of the final calculated trade credit insurance premium, up to a limit of 5 million KRW per company.

The support targets SMEs located in Seoul engaged in manufacturing and service industries.

Trade credit insurance is a public insurance system operated by KODIT under the commission of the Ministry of SMEs and Startups to support small businesses. When an insured SME sells goods on credit to a client and fails to collect the payment, KODIT compensates up to 80% of the loss incurred.

A KODIT official stated, "We expect this agreement to help prevent chain bankruptcies and expand sales channels for SMEs in Seoul struggling due to the prolonged economic downturn caused by COVID-19," adding, "We will do our best to provide more active support for the prompt business stabilization of SMEs."

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