Busan City and Korea Credit Guarantee Fund to Support SMEs' 'Accounts Receivable Insurance Premiums'

Busan City Supports 50% of Accounts Receivable Insurance Premiums for SMEs
Korea Credit Guarantee Fund Offers Additional 10% Discount
Up to 2.5 Million KRW per Company... First-Come, First-Served Limit of 200 Million KRW Until Year-End

Support structure for accounts receivable insurance operations in Busan City.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Busan City plans to support insurance premiums for small and medium-sized enterprises (SMEs) subscribing to insurance against accounts receivable losses.

On the 27th, Busan City announced that it will sign a "Busan City Accounts Receivable Insurance Premium Support Business Agreement" with the Korea Credit Guarantee Fund to support local SMEs struggling due to COVID-19 and other difficulties.

Accounts receivable insurance is a public insurance that compensates up to 80% of losses incurred when an SME that has an insurance contract sells goods or services to a client but fails to collect the accounts receivable. This insurance is operated by the Korea Credit Guarantee Fund under delegation from the Ministry of SMEs and Startups.

According to the agreement, ▲ Busan City will support 50% of the insurance premiums paid by local companies when subscribing to accounts receivable insurance, and ▲ the Korea Credit Guarantee Fund will provide an additional 10% discount on the premiums. The support amount is up to 2.5 million KRW per company and will be provided on a first-come, first-served basis within a limit of 200 million KRW until the end of this year.

The insurance premium support targets SMEs headquartered or with main business sites in Busan that operate in Busan City's strategic industries. These include various sectors such as automobile parts, marine, machinery, manufacturing, textiles, fashion, transportation, and services, with priority support given to companies affected by COVID-19.

For detailed inquiries, phone consultations are available at the Korea Credit Guarantee Fund Busan Insurance Center, and applications can be submitted online through the Korea Credit Guarantee Fund website's online accounts receivable insurance platform.

Byun Sung-wan, Acting Mayor of Busan, said, "Accounts receivable insurance will be a reliable safety net for SME owners facing transaction risks more than ever due to the prolonged COVID-19 pandemic."

Mayor Byun added, "We plan to gradually expand support for accounts receivable insurance premiums after successfully starting this year, and we will continue to actively support the stable growth of Busan's SMEs in various ways."

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