Hana Bank Launches Export Credit Guarantee Product

Asia Economy DB

[Asia Economy Reporter Kim Min-young] Hana Bank announced on the 7th that it will introduce the Korea Trade Insurance Corporation's 'Export Credit Guarantee (Comprehensive Purchase)' product to revitalize exports of domestic companies struggling due to the novel coronavirus disease (COVID-19).

The export credit guarantee is a guarantee-backed product available when a bank purchases export receivables from export companies to support early cash conversion, helping export companies secure liquidity.

The newly launched product allows export companies to provide collateral for the purchase of export receivables arising from multiple importers with a single guarantee, resolving the inconvenience of having to issue separate guarantees for each importer.

Through the introduction of the export credit guarantee via a business agreement with the Korea Trade Insurance Corporation, Hana Bank will collaborate to enhance export vitality for small and medium-sized export companies, while also providing additional financial benefits such as support for guarantee fees and further reductions in discount fees related to this guarantee.

If the applying company designates Hana Bank as the account to collect export payments, the guarantee fee payment to the Korea Trade Insurance Corporation for issuing this guarantee will be fully supported up to a limit of 10 million KRW per company. Additionally, the discount fee for purchasing export receivables using this guarantee will be further reduced by 0.5%.

A Hana Bank official stated, “We will be a reliable partner providing practical support for management stability by timely supplying liquidity to small and medium-sized export companies in the Republic of Korea struggling due to the prolonged COVID-19 situation.”

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