Sinbo, Business Agreement with Chungbuk … "We Offer Discounts on Accounts Receivable Insurance Premiums"

[Asia Economy Reporter Song Seung-seop] The Korea Credit Guarantee Fund (KODIT) announced that it has signed a "Trade Credit Insurance Premium Support Business Agreement" with Chungcheongbuk-do.

Trade credit insurance is a public insurance system in which KODIT compensates up to 80% of losses for companies that fail to collect payments from their clients. It is operated under the commission of the Ministry of SMEs and Startups. This agreement was established to prevent a chain bankruptcy of small and medium-sized enterprises (SMEs) in Chungbuk, which have been struggling due to the prolonged COVID-19 pandemic, and to support market expansion.

According to the agreement, KODIT will offer a 10% discount on insurance premiums for Chungbuk SMEs. Chungbuk will contribute 200 million KRW to KODIT to support 50% of the insurance premiums up to 2 million KRW per company. To receive support, the company's headquarters or main business site must be located in Chungbuk and engaged in manufacturing.

Meanwhile, KODIT plans to expand the operation of trade credit insurance to 21 trillion KRW this year, which is 1 trillion KRW more than last year.

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