Mubo Signs Reinsurance Agreement with U.S. Export-Import Bank to Strengthen Support for Overseas Projects

Establishing a Flexible Risk-Sharing Cooperation System

[Asia Economy Sejong=Reporter Dongwoo Lee] The Korea Trade Insurance Corporation (K-Sure) has stepped up efforts to support companies in securing overseas projects.

On the 25th, K-Sure announced that it signed a Korea-US reinsurance agreement with the US Export-Import Bank (US EXIM) in New York, USA. This agreement aims to cooperate in responding to the restructuring of the Korea-US supply chain and jointly support new industry and strategic industry projects.

Reinsurance refers to a method where the primary financial institution provides initial financing for projects involving companies from various countries, and part of the financial support amount is shared by financial institutions from other countries to disperse risk. This has the advantage of expanding the scope of financial support for projects involving companies from both countries.

For example, if a US telecommunications operator procures 30% of the necessary equipment from Korean companies while building telecommunications facilities in South America, K-Sure will provide financial support by sharing 30% of the total financial support amount from the US Export-Import Bank as reinsurance.

With this reinsurance agreement, K-Sure has established a flexible risk-sharing cooperation system, enabling it to strengthen its support function for securing overseas projects.

Through this, it can support telecommunications industry construction projects in Latin America, respond to supply chain restructuring in semiconductors and secondary batteries, foster strategic industries, and boost export vitality. It also plans to accelerate support for projects such as renewable energy in sub-Saharan Africa.

Lee In-ho, President of the Korea Trade Insurance Corporation, said, "With this agreement, as a public export credit agency, we are pleased to expand our support capabilities in third markets such as Latin America and Africa, contributing to stronger Korea-US economic cooperation."

He added, "We will take this as a positive opportunity to respond swiftly to global supply chain restructuring and expand project export routes in high value-added strategic industries such as semiconductors and renewable energy."

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