Trade Finance Support, Conveniently Online Without Physical Documents

[Asia Economy Reporter Song Seung-seop] In the future, companies will be able to receive trade finance support quickly without submitting physical documents. The cumbersome process of issuing and submitting physical documents will be simplified online.

According to the financial sector on the 26th, the Korea Credit Information Services and the Export-Import Bank of Korea will operate the ‘Export Performance Online Transfer System.’ Once this system is introduced, banks will be able to process export performance transfers in real-time through the Credit Information Services' online platform.

Until now, export companies needed to provide past export performance as evidence to receive trade finance support for manufacturing, production, and purchasing funds. To do this, they had to apply for export performance transfer at their transaction bank, receive the documents, and then submit them to the trade finance handling bank. With the introduction of this system, export companies can receive financial support without submitting any physical documents.

This system was realized as the Credit Information Services actively embraced the idea of digitizing export performance transfers by utilizing the ‘Credit Information Joint Computer Network.’

Once the system is operational, it is expected to resolve issues such as delays in processing export performance transfers and decreased work efficiency. The waiting time for financial support due to transfer processing procedures will also be reduced. From the banks’ perspective, they can enjoy improved work efficiency. Since the verification process of the authenticity of export performance transfers can be omitted, problems such as duplicate use and omissions can be prevented.

The system has been piloted since the 14th at eight foreign exchange banks (Export-Import Bank of Korea, KB Kookmin Bank, IBK Industrial Bank, NH Nonghyup Bank, Industrial Bank, Shinhan Bank, Woori Bank, and Hana Bank). Full-scale operation will begin on the 28th. The service is planned to be expanded to all foreign exchange banks, including regional banks, within this year.

An official from the Export-Import Bank of Korea stated, “With the operation of this system, small and medium-sized enterprises with limited personnel will no longer need to visit trade finance handling banks to submit export performance transfer documents. Since export performance transfers can now be done in real-time, the time it takes for companies to receive financial support will be significantly shortened, greatly helping improve companies’ access to policy finance and work convenience.”

A representative from the Credit Information Services also emphasized, “Through this service, export companies will be able to closely experience the digital transformation in the financial sector. We will continue to actively respond to the demands of financial companies and consumers to enhance the convenience of financial services and promote digital transformation.”

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