Mubo and KB Bank Support 500 Billion KRW in Export-Import Financing for SMEs

Lee In-ho, President of Korea Trade Insurance Corporation. (Photo by Korea Trade Insurance Corporation)

[Asia Economy Reporter Moon Chaeseok] The Korea Trade Insurance Corporation (K-sure) is launching special financing to revitalize exports for small and medium-sized enterprises (SMEs).

On the 15th, K-sure announced that it signed a 'Special Contribution Business Agreement for the Activation of Export-Import Finance for Small and Medium Enterprises' with KB Kookmin Bank at its headquarters in Jongno-gu, Seoul.

Under this agreement, K-sure will provide export-import financing worth 500 billion KRW to SMEs and mid-sized companies struggling due to the novel coronavirus disease (COVID-19).

KB Kookmin Bank will make a special contribution of 30 billion KRW to the Trade Insurance Fund. K-sure plans to use 27.5 billion KRW of this as capital to supply export-import financing, and 2.5 billion KRW will be used to support insurance and guarantee fees.

Additionally, K-sure will offer preferential support to companies recommended by KB Kookmin Bank under the newly introduced 'Export Credit Guarantee Comprehensive Purchase' and 'Import Insurance Global Supply Chain' systems in the second half of this year.

The Export Credit Guarantee Comprehensive Purchase system supports exporters by allowing them to early monetize export receivables with a single guarantee certificate per exporting company, instead of issuing separate guarantees for each overseas buyer.

The Import Insurance Global Supply Chain system guarantees against potential losses that may occur during import financing, significantly expanding support targets to include materials, parts, and equipment, while simplifying usage procedures.

K-sure plans to offer preferential terms to companies recommended by KB Kookmin Bank, including a guarantee ratio of up to 95%, support limits up to twice the usual amount, and a 20% discount on insurance premiums.

KB Kookmin Bank will provide financial cost reduction benefits to SMEs and mid-sized companies through preferential loan interest rates, fee exemptions, and support for trade insurance premiums under this agreement.

Lee In-ho, President of K-sure, said, "We expect this collaboration to help export SMEs and mid-sized companies find new opportunities amid ongoing risks such as the prolonged COVID-19 pandemic and intensified US-China conflicts in the trade environment."

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