Mubo, Shinbo, and Kibo Jointly Support Export SMEs' Liquidity

Ongoing Funding Shortages Due to Prolonged COVID-19
20 Billion Won Support This Year... K-Sure Provides 10 Billion Won

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

[Asia Economy Reporter Moon Chaeseok] Korea Trade Insurance Corporation (K-SURE) announced on the 24th that it has signed a "Joint Financial Support Agreement for Export SMEs Facing Liquidity Crisis" together with the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation.

The agreement was promoted as a follow-up measure to the export revitalization plan confirmed by the government, including the Ministry of Trade, Industry and Energy, at the 2nd Expanded Trade Strategy Coordination Meeting chaired by the Prime Minister on the 10th.

K-SURE will provide 100 billion KRW, while the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation will each provide 50 billion KRW. K-SURE will support up to 300 million KRW per company. Export companies can secure up to 800 million KRW in funds, including up to 500 million KRW from the Korea Credit Guarantee Fund or the Korea Technology Finance Corporation.

The Korea Credit Guarantee Fund or the Korea Technology Finance Corporation will first provide part of the required funds, after which K-SURE will offer additional guarantees. This plan aims to increase tangible benefits that can be felt on the ground.

The support targets are export SMEs with direct or indirect export performance in the previous year or the most recent one year. The agreement takes effect from the date of signing.

K-SURE has prepared a simplified screening procedure, such as a checklist method, to enable prompt support.

The three institutions agreed on the necessity of providing additional liquidity supply amid the situation where companies' credit limits with financial institutions have become insufficient.

K-SURE's cooperation system with related institutions has also expanded from commercial banks such as Hana Bank and Shinhan Bank to policy financial institutions.

Lee In-ho, President of K-SURE, said, "As the impact of the novel coronavirus disease (COVID-19) continues and the global economic recovery is slow, many export companies still suffer from liquidity shortages. We will do our best to ensure that policies reflecting voices from the field continue to emerge to revive export vitality and overcome this unprecedented crisis."

K-Sure Headquarters. (Photo by Korea Trade Insurance Corporation)

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