Shin Yong Bo Jeung Gi Geum Launches 'High Option Insurance' Allowing Contract Changes

Contract Change Fee '0'
20% Refund of Paid Premiums for No Claims

High Option Insurance Contract Change Flowchart

[Asia Economy Reporter Park Sun-mi] The Korea Credit Guarantee Fund announced on the 6th that it has launched the ‘High Option Insurance,’ a trade credit insurance product that allows changes to contract terms according to changes in business environment even after subscribing to trade credit insurance.

‘High Option Insurance’ is a trade credit insurance product that allows up to three changes to contract terms without fees from a certain period after the insurance subscription date until three months before the insurance expiration date. In particular, if no accidents occur, 20% of the paid insurance premium is refunded, helping reduce insurance costs.

The contract terms that can be changed include ▲insurance amount, ▲average payment period, ▲extension of payment due date, ▲continued transactions with accident-normalized companies, and ▲addition of new trading partners.

Previously, if the accounts receivable were not settled by the extended payment due date, which was two months added to the payment due date, an insurance accident occurred. However, with ‘High Option Insurance,’ the extension of the payment due date can be extended up to three months. Also, purchasing companies that do not change the average payment period or extended payment due date can continue transactions as insured targets if the related accounts receivable are fully settled even if an insurance accident occurs.

The total compensation limit is up to 30 times the paid insurance premium, and insurance payments cover up to 85% of the actual loss amount. Eligible subscribers include ▲small and medium-sized enterprises and mid-sized companies with annual sales of 30 billion KRW or more, ▲excellent companies selected by the Korea Credit Guarantee Fund such as Shinbo Star companies and IPO candidate companies, and ▲excellent companies selected by related policy institutions such as the Small and Medium Business Corporation.

A Korea Credit Guarantee Fund official said, “High Option Insurance is a customer-friendly product with low insurance premium burden and the ability to respond to changes in the business environment through contract changes,” adding, “The Fund will continue to develop market-friendly new products and enhance customer convenience to overcome the COVID-19 crisis and strengthen the management safety net for small and medium-sized enterprises.”

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