Sooeun Provides Liquidity to Apparel Export Companies through 'Digital Supply Chain Finance'

Provision of a $30 Million Revolving Credit Facility through Export Receivables Reacquisition Method

[Asia Economy Reporter Jin-ho Kim] The Export-Import Bank of Korea announced on the 19th that it will purchase export receivables through a paperless "digital supply chain finance" system to shorten the collection period of export funds for domestic small and medium-sized enterprises (SMEs) and mid-sized companies.

Digital supply chain finance is a financial product that purchases export receivables without documents through a global supply chain linkage system among suppliers (exporters), buyers (importers), and financial institutions. The bank accesses the digital platform used by the transaction parties and the shipping company to quickly verify the actual transaction without customers submitting documents, then provides working capital support.

On the same day, the bank decided to support digital supply chain finance with a revolving limit of $30 million by purchasing export receivables generated from export transactions between domestic companies and the famous U.S. clothing company The Gap from Deutsche Bank and then reacquiring them.

The bank plans to continue supplying additional liquidity to domestic SMEs and mid-sized companies, which are facing increasing difficulties due to the ongoing spread of COVID-19, by purchasing export receivables and offering benefits such as reduced discount fees.

An official from the bank said, "Digital supply chain finance is a win-win cooperation model among our export companies, import companies, and financial institutions that will strengthen the competitiveness of our companies," adding, "It is expected to greatly improve efficiency and transaction transparency as rapid non-face-to-face processing becomes possible."

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