Gyeonggi-do Expands 'Accounts Receivable Insurance Premium Support' for SMEs with Sales Under 30 Billion Won

10% Discount Applied, 50% Coverage on Insurance Enrollment Fee

Photo by Asia Economy DB

[Asia Economy Reporter La Young-cheol] Gyeonggi Province announced on the 7th that it has decided to expand the "Accounts Receivable Insurance Premium Support Project" and plans to support at least 150 additional companies beyond the original plan.

According to the province, the "Accounts Receivable Insurance Premium Support" project was introduced in February this year when the province signed a business agreement with the Korea Credit Guarantee Fund to prevent a chain bankruptcy of companies.

Last month, through the third supplementary budget of 2021, the province additionally allocated 300 million KRW and plans to support at least 150 more companies by the end of the year.

The support targets manufacturing companies with sales under 30 billion KRW whose headquarters or main business sites are located in Gyeonggi Province.

The province supports 50% of the accounts receivable insurance subscription cost, with a maximum support amount of 2 million KRW per company.

A 10% discount on the insurance premium is applied, but the insurance premium support is provided only until the budget is exhausted.

Accounts receivable insurance is a public insurance system operated by the Korea Credit Guarantee Fund to compensate (up to 80% of the loss amount) for damages such as payment defaults or non-performance of obligations in transactions between companies, according to the Small and Medium Enterprise Promotion Act.

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