Mubo Expands Support Limit by 190 Billion Won for Export Companies in New Industries Such as Electric Vehicles and Robots

Establishment of 'Premium Comprehensive Insurance'
Managing External Risks in Overseas Expansion

[Asia Economy Reporter Kim Bo-kyung] The Korea Trade Insurance Corporation is improving the short-term export insurance system to overcome the novel coronavirus disease (COVID-19) crisis. Short-term export insurance is trade insurance that compensates for losses incurred when export payments are not collected after a company exports goods.

On the 18th, a K-sure official stated, "To overcome COVID-19 and prepare for the post-COVID era, we will strengthen the external risk coverage function by improving the short-term export insurance system and increase support for export companies." The key points of this measure are ▲expansion of support for new industries ▲strengthening of trade insurance coverage ▲introduction of a customer preferential program, all aimed at enhancing support for short-term export insurance.

First, for companies exporting goods in 12 new industries designated by the government, such as electric vehicles, smart ships, robots, and biohealth, the short-term export insurance limit will be increased by up to 20% from the current level. This measure is expected to add a total of 190 billion KRW to the new industry insurance limit, providing momentum for overseas expansion.

For mid-sized companies using short-term export insurance, the proportion of export payments that can be compensated by insurance will be expanded from the current 97.5% to 100%. This means that mid-sized companies will have the same coverage as small and medium-sized enterprises, with protection up to 100% of the export amount.

In October, a new "Premium Comprehensive Insurance" will be introduced, offering benefits such as strengthened coverage of short-term export insurance and relaxation of insurance subscription restrictions. Although it is usually operated annually from January, this year it will be implemented three months earlier in October considering the COVID-19 crisis. A K-sure official said, "We expect that customers using the new program will be able to increase the utilization of trade insurance for managing external risks and pioneering new markets."

Meanwhile, since April, K-sure has been extending the short-term export insurance limits for major export markets such as the United States, China, and the European Union (EU) without reduction, so that export companies can maintain relationships with existing clients and preserve market share. As of July, the support scale reached 16,996 cases and 20.1595 trillion KRW in amount, surpassing 70% of this year's target (28.7 trillion KRW) and progressing smoothly.

Lee In-ho, President of K-sure, stated, "We will continue to review the existing support measures and activate all available means to reduce external risks for export companies and open opportunities for overseas expansion."

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