Gwangju City Supports Insurance Premiums for Credit Losses of Small and Medium Enterprises

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 27th that it is supporting the insurance premiums for 'Accounts Receivable Insurance' to help local small and medium-sized enterprises (SMEs) facing financial difficulties due to prolonged COVID-19 prepare for risks related to cash flow problems caused by credit transactions.

Accounts Receivable Insurance is a public insurance system that pays insurance benefits up to 80% from the Korea Credit Guarantee Fund for losses incurred when SMEs sell goods on credit to clients and fail to collect payments.

Gwangju City has contributed 300 million KRW to the Korea Credit Guarantee Fund and supports 50% of the final calculated accounts receivable insurance premium, up to 3 million KRW per company, until funds are exhausted.

The Korea Credit Guarantee Fund offers a 10% discount on accounts receivable insurance premiums for SMEs as preferential support.

The support targets SMEs located in Gwangju that operate in industries eligible for accounts receivable insurance contracts, such as manufacturing, wholesale, and service industries.

For inquiries related to insurance support under the accounts receivable insurance support project, contact the Korea Credit Guarantee Fund Gwangju Credit Insurance Center.

Son Hang-hwan, Director of Corporate Development at the city, said, “We expect that this public insurance system, implemented to secure stability for credit transactions of local SMEs struggling due to COVID-19, will help serve as a management safety net for local SMEs.”

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