Mubo and Sandan Gong Join Hands to Nurture Export Beginners

Signing of a Business Agreement to Promote Export Companies Among Small and Medium Enterprises in Industrial Complexes
Providing One-on-One Export Consulting Including Joint Support for Trade Insurance and Guarantees to Export Novice Companies

Lee In-ho, President of Korea Trade Insurance Corporation (right), and Kim Jeong-hwan, Chairman of Korea Industrial Complex Corporation, are posing for a commemorative photo after signing a business agreement at the Incheon Regional Headquarters of Korea Industrial Complex Corporation on the 9th.

[Asia Economy Reporter Kwangho Lee] Korea Trade Insurance Corporation (K-sure) and Korea Industrial Complex Corporation (KICOX) have joined forces to promote the overseas expansion of domestic companies. On the 14th, K-sure and KICOX announced that they signed a business agreement on the 9th to jointly support trade insurance and guarantees to activate the overseas expansion of export beginner companies within industrial complexes.

When KICOX selects 'export target companies' among tenants in industrial complexes, K-sure will cover the risk of non-receipt of export payments up to $20,000 annually through export safety net insurance, and KICOX will support the insurance premiums. Additionally, for companies needing production funds, K-sure will also provide special guarantees based on export contracts.

The two organizations will also provide free one-on-one export consulting on export financing procurement, export receivables management, foreign exchange risk management, finance, legal affairs, and accounting to lower export entry barriers, and hold trade insurance system briefings visiting regional industrial complexes.

Before the signing ceremony, the heads of both organizations held a meeting with six companies located in Incheon Metropolitan City to listen to voices from the industrial field.

At the meeting, Oh Hak-seong, Vice President of Innatron, said, "We are overcoming difficulties well with the emergency export stabilization funds supported by K-sure last June," and requested continuous expansion of trade insurance and guarantee support for small and medium-sized enterprises (SMEs) and mid-sized companies.

The emergency export stabilization fund is a newly introduced system by K-sure as a follow-up measure to the 'Export Vitality Enhancement Plan' announced by the Ministry of Trade, Industry and Energy and other government bodies in April. It provides up to 500 million KRW per company quickly in response to COVID-19.

Based on such field opinions, K-sure and KICOX plan to actively implement customized support systems to nurture export beginner companies.

Lee In-ho, President of K-sure, said, "Amid ongoing global economic uncertainties due to the spread of COVID-19, we hope that the collaboration between the two organizations will contribute to reducing overseas transaction risks for industrial complex tenant companies and serve as an opportunity to overcome crises through exports."

Kim Jeong-hwan, Director of KICOX, emphasized, "We hope this agreement will be of some help to industrial complex tenant companies struggling due to COVID-19," and added, "We hope to continue practical cooperation so that KICOX and K-sure can develop into true partners."

Meanwhile, K-sure has been operating a system to nurture export beginner companies since 2018 to promote exports of SMEs and mid-sized companies with little export experience, supporting 52.4 billion KRW to 524 companies last year alone. KICOX has also been selecting export beginner companies since 2018 and providing step-by-step export support from company diagnosis to export consultation and follow-up measures. In 2019, it achieved export contracts worth $5.485 million for export beginner companies, showing notable results.

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