[2021 Economic Policy] 255.8 Trillion Liquidity Support for Export Companies... 6.4% Increase YoY

Government's '2021 Economic Policy Direction'
Mubo 167 trillion · Su-eun 72 trillion, etc.
Liquidity supply and insurance maturity expiring at the end of this year
Extended until the first half of 2021

[Asia Economy Reporter Moon Chaeseok] The government will provide export financing worth 255.8 trillion won to export companies. This amount is 6.4% higher than last year. The export company liquidity supply program and insurance/guarantee maturities, which were scheduled to expire at the end of this year, will be extended until the first half of next year.

On the 17th, the Ministry of Economy and Finance announced this export company support policy through the '2021 Economic Policy Direction.'

255.8 Trillion Won Invested in Export Financing

[Image source=Yonhap News]

Starting next month, the government will support export companies with 255.8 trillion won in export financing through the Export-Import Bank of Korea, Korea Trade Insurance Corporation, Korea Credit Guarantee Fund, Korea Technology Finance Corporation, and Small and Medium Business Corporation.

Beyond simple liquidity support, customized support for small and medium enterprises (SMEs) entering new markets will be increased (SMBA: 300 billion won → 500 billion won). To enhance the potential of SMEs with export performance, preferential guarantees will be supplied (Kibo: 3.15 trillion won → 3.2 trillion won).

Extension of Liquidity Supply and Export Insurance Maturities

Na Seung-sik, Director of the Trade and Investment Office at the Ministry of Trade, Industry and Energy, attended the "Online Trade Insurance Launch Ceremony" held on June 4th at the Korea Trade Insurance Corporation's conference room in Seoul. He demonstrated the issuance of an insurance policy to Polytech INC, the first enrolled company, and delivered an encouraging speech. (Photo by Yonhap News)

In relation to COVID-19, the Export-Import Bank's liquidity supply program for export companies and the Korea Trade Insurance Corporation's export insurance and guarantee maturities will be extended from the end of this year to the first half of next year.

The Export-Import Bank will provide new liquidity loans and preferential support for financial guarantees. The Korea Trade Insurance Corporation will reduce insurance and guarantee fees by 50% for export SMEs and mid-sized companies, along with extending insurance and guarantee maturities.

Extension of Businesspeople Entry and Exit Support Center Operation Until the End of Next Year

On the morning of October 8, when the 'Special Entry Procedures for Businesspeople' between Korea and Japan were implemented, passengers at the departure hall of Terminal 2 at Incheon International Airport were going through the boarding process for a flight to Tokyo, Japan, carrying negative COVID-19 test certificates.

The support period for companies facing difficulties in overseas travel due to COVID-19 will be extended until the end of next year. The reception window for businesspeople's 'quarantine exemption certificates' will be unified, and submission documents will be improved.

After quarterly demand surveys, exceptional entry will be allowed to countries with high corporate demand, and the 'fast track' for simplifying entry procedures will be expanded.

Securing Dedicated Shipping Space for SMEs to Respond to 'Logistics Crisis'

Kim Young-joo, Chairman of the Korea International Trade Association (left), and Sung Yun-mo, Minister of Trade, Industry and Energy, are visiting the 'Comprehensive Export-Import Logistics Response Center' inside the Trade Tower in Gangnam-gu, Seoul, on the morning of the 8th. (Photo by Yonhap News)

Amid concerns over a logistics crisis due to rising shipping rates and lack of shipping space, the government has decided to secure dedicated shipping space for small and medium enterprises and mid-sized companies. More than two temporary vessels from domestic shipping companies will be deployed monthly, and 50% of the shipping space will be preferentially provided to SMEs and mid-sized companies. Next year, 45% of the increase in new shipping capacity from domestic shipping companies will be preferentially allocated to SMEs and mid-sized companies.

Overseas joint logistics centers will be opened in Indonesia (March next year), and the Netherlands and Spain (tentatively September next year). Through these centers, domestic companies will be able to use logistics facilities at 50-80% lower costs.

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