Gyeonggi-do Expands 'Accounts Receivable Insurance Premium Support Project'

Over 500 Manufacturing and SMEs with Sales Under 30 Billion Won in the Province

Gyeonggi Provincial Government Northern Office

[Asia Economy Reporter Ra Young-cheol] Gyeonggi Province will expand support for the 'Accounts Receivable Insurance Premium Support Project' for companies compared to last year.

The province announced on the 17th, "We have increased the budget by 300 million KRW from the previous year's main budget, and plan to spend a total of 800 million KRW this year to support more than 500 companies."

The support target is manufacturing companies with sales under 30 billion KRW whose headquarters or main business sites are located in Gyeonggi Province. Since 98% of small and medium-sized manufacturing companies with relatively small management scale have sales under 30 billion KRW, this practically applies to most companies.

The program supports 50% of the accounts receivable insurance subscription cost, with a maximum support amount of 2 million KRW per company. In particular, a 10% discount on insurance premiums is applied through an agreement with the Korea Credit Guarantee Fund.

Insurance premium support will be provided from next month until the budget is exhausted. However, some products such as promissory note insurance and fixed-rate insurance are not supported.

Accounts receivable insurance is a public insurance system that compensates for unforeseen damages such as insolvency or default of the debtor (buyer) to the creditor (insurance policyholder) who supplies goods or services on credit in transactions between companies.

Previously, the province planned to support 250 companies by investing 500 million KRW last year, but the related budget was quickly exhausted, so an additional budget was prepared to support 430 companies.

Ryu Gwang-yeol, Director of the Economic Office, said, "Due to the prolonged domestic and international economic downturn caused by COVID-19, there is persistent instability in credit transactions. We will spare no effort to strengthen the management safety net for companies to prevent potential chain bankruptcies and enhance business competitiveness."

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