Shinbo "10% Discount on Accounts Receivable Insurance Premiums and Support Up to Half the Premium"

Shinbo Signs Business Agreement with Seoul City
10% Insurance Premium Discount and Support up to 2 Million Won

[Asia Economy Reporter Minwoo Lee] Accounts receivable insurance premiums for small and medium-sized enterprises (SMEs) in Seoul with annual sales under 20 billion KRW will be discounted by 10%. Additionally, half of the insurance premiums to be paid will be supported by the Seoul Metropolitan Government.

The Korea Credit Guarantee Fund (KODIT) announced on the 2nd that it has signed a "Accounts Receivable Insurance Premium Support Business Agreement" with the Seoul Metropolitan Government. This is to prevent a chain of bankruptcies among SMEs located in Seoul who are struggling due to the prolonged COVID-19 pandemic and to support management stability.

Under this agreement, KODIT will provide a 10% discount on insurance premiums, and Seoul will contribute 2 billion KRW to KODIT to support 50% of the insurance premiums up to 2 million KRW per company. This contribution is the largest among local government insurance premium support agreements. The support targets SMEs with headquarters or main business sites located in Seoul and annual sales under 20 billion KRW.

Accounts receivable insurance is a public insurance system operated by KODIT under the commission of the Ministry of SMEs and Startups. If a company that has subscribed to the insurance sells goods or services on credit and fails to collect payment from its clients, it compensates up to 80% of the loss.

The Ministry of SMEs and Startups has approved KODIT to expand the scale of accounts receivable insurance this year to 21 trillion KRW, an increase of 1 trillion KRW compared to the previous year, to support the management stability of SMEs facing worsening domestic and international conditions.

A KODIT official stated, "This agreement will greatly help reduce financial costs for SMEs located in Seoul and aid in the economic recovery of the Seoul area," adding, "Going forward, based on active support from the Ministry of SMEs and Startups, KODIT will do its best to create a safe trading environment for SMEs."

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