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

[Asia Economy Reporter Moon Chaeseok] On the 17th, the Korea Trade Insurance Corporation visited Jeil Hwaseong, a small and medium-sized chemical material manufacturer in Ulsan, to hear about the difficulties caused by the prolonged COVID-19 pandemic. This was to reflect the voices from the field in trade insurance support measures.

Jeil Hwaseong is a company that succeeded in domestic production of epoxy resin, a core material for semiconductors and displays. On this day, they explained their recent business status and challenges in exploring overseas markets to the Korea Trade Insurance Corporation.

The corporation promised to actively support companies with technological capabilities and growth potential so they do not collapse due to COVID-19.

Lim Jong-il, CEO of Jeil Hwaseong, said, "This year, we faced difficulties in exporting to China due to COVID-19, but the Korea Trade Insurance Corporation’s emergency export stabilization funds were a great help. We are pioneering overseas markets with eco-friendly epoxy that does not use greenhouse gases, but we are concerned about the risk of non-payment of export proceeds from new buyers and securing funds for additional production facility investments."

In response, the Korea Trade Insurance Corporation provided guidance on trade insurance systems necessary for export receivables risk management, early cash conversion, and financing for facility investment. They also stated, "We will do our best to support strengthening the export competitiveness of core material export companies."

The corporation is diversifying trade insurance systems to strengthen support for small and medium-sized material, parts, and equipment companies entering overseas markets. This is because the global value chain (GVC) is being reorganized due to the COVID-19 pandemic and other factors.

Earlier in February, the scope of support for the 'Export Base Insurance' was expanded to help material, parts, and equipment export companies with technological capabilities smoothly secure funds for facility investments.

Last month, the 'Import Insurance Global Supply Chain' was launched to strengthen financing support functions for importing essential raw and subsidiary materials.

Lee In-ho, President of the Korea Trade Insurance Corporation, noted, "The prolonged COVID-19 pandemic is changing the GVC landscape, and external trade conditions are rapidly changing with the recent conclusion of the Regional Comprehensive Economic Partnership (RCEP)."

President Lee added, "The Korea Trade Insurance Corporation will always listen to voices from the field and continuously improve trade insurance systems to closely support our small and medium-sized material, parts, and equipment companies so they can find opportunities amid crises and leap forward globally."

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.