Mubo "Cash Conversion with a Single Guarantee Certificate"... Launch of 'New Export Credit Guarantee'

Even with Many Buyers, One Guarantee Certificate Processed
New Product Launch: 'Export Credit Guarantee Comprehensive Purchase'
Business Agreement Signed with Shinhan Bank and Hana Bank

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 6th that it will implement a new guarantee system called Export Credit Guarantee (Comprehensive Purchase) starting on the 7th.

This is to help small and medium-sized export companies struggling due to the prolonged COVID-19 pandemic secure liquidity.

The Export Credit Guarantee system allows small and medium-sized export companies to sell goods on credit to overseas buyers and immediately convert export receivables into cash at banks. K-SURE provides collateral to the banks.

K-SURE explained that this system can dramatically improve the convenience for export companies.

Unlike the existing method that requires a guarantee certificate for each buyer, one guarantee certificate can be used to cash all export receivables with all buyers.

The existing early cash conversion system for export receivables was somewhat inconvenient for export companies dealing with multiple buyers because a guarantee certificate was needed for each buyer.

In contrast, the Export Credit Guarantee issues one guarantee certificate per export company without specifying buyers.

Export companies can freely use the total guarantee limit for transactions with multiple buyers, and export receivables with new buyers can also be cashed using the existing guarantee certificate, which is an advantage.

The screening process has been simplified into a checklist format, and the required submission documents have been minimized.

Simplified screening criteria have been pre-established according to the guarantee amount, and export companies meeting the criteria can receive prompt support.

Screening documents such as past transaction records with specific buyers have been boldly omitted, reducing the number of required documents from 11 to less than 7, which is less than two-thirds of the previous requirement.

K-SURE stated that to ensure the new system is quickly established and activated in the market, it has signed a business agreement with Shinhan Bank and Hana Bank and will implement the system starting on the 7th.

K-SURE shares detailed information such as guarantee screening criteria with banks to support smooth marketing. Each bank will support up to 10 million KRW in guarantee fees per company to reduce the cost burden on export companies.

Lee In-ho, President of K-SURE, said, "After considering a simpler and more convenient usage method for small and medium-sized export companies under financial pressure due to the prolonged COVID-19 pandemic, we have introduced this new guarantee system."

President Lee emphasized, "We will closely cooperate with financial institutions and related organizations to swiftly promote policy support so that our companies can successfully overcome difficulties caused by COVID-19."

Exterior view of the Korea Trade Insurance Corporation headquarters. (Photo by Korea Trade Insurance Corporation)

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