Shinbo Signs 'Accounts Receivable Insurance Premium Support Business Agreement' with Gyeongnam Province

[Asia Economy Reporter Kwangho Lee] The Korea Credit Guarantee Fund (KODIT) announced on the 25th that it has signed a "Trade Credit Insurance Premium Support Agreement" with Gyeongsangnam-do to prevent chain bankruptcies of small and medium-sized enterprises (SMEs) located in Gyeongsangnam-do and to support market expansion.

Through this agreement, KODIT will offer a 10% discount on insurance premiums, and Gyeongsangnam-do will contribute 500 million KRW to KODIT to support 50% of the final calculated insurance premium, up to a limit of 3 million KRW per company.

The support targets SMEs engaged in manufacturing located in Gyeongsangnam-do with sales under 30 billion KRW.

Trade credit insurance is a public insurance system operated by KODIT under the commission of the Ministry of SMEs and Startups, which guarantees the risk of credit transactions between companies. It compensates up to 80% of losses incurred when a company that has sold goods or services on credit fails to collect payment from its trading partner.

KODIT plans to underwrite trade credit insurance worth 20 trillion KRW this year to prevent chain bankruptcies and support management stability of SMEs struggling due to COVID-19.

A KODIT official said, "We hope this agreement will help SMEs, which have been increasingly challenged by COVID-19, to quickly stabilize their management and overcome the crisis," adding, "Trade credit insurance will continue to serve as a reliable support pillar for SMEs."

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