Chungnam Supports Accounts Receivable Insurance Premiums... A 'Safety Net' to Prevent Chain Bankruptcies of SMEs

[Asia Economy (Hongseong) Reporter Jeong Il-woong] The accounts receivable insurance premium support project implemented by Chungnam Province is effectively serving as a safety net to prevent the chain bankruptcy of local small and medium-sized enterprises (SMEs).

The province announced on the 20th that through this year's accounts receivable insurance premium support project, it guaranteed bonds worth 671.4 billion KRW for 111 local SMEs.

The project is carried out to reduce the burden of accounts receivable insurance premiums for local SMEs struggling due to economic recession and to serve as a transaction safety net that prevents chain bankruptcies of SMEs when they face default situations due to non-collection of payments from clients.

Through this project, manufacturing SMEs with headquarters or main business locations in Chungnam can receive support covering 60% of their accounts receivable insurance premiums within the limit.

Additionally, when subscribing to Dasarang Insurance within the accounts receivable insurance, credit guarantee evaluations are upgraded by one grade during credit guarantee screening, resulting in reduced credit insurance guarantee fees and discounted interest rates on securitized corporate bond guarantees, according to the province.

Since 2019, the province has guaranteed bonds worth a total of 2.2456 trillion KRW across 478 cases for local companies through this project and compensated 625 million KRW to six companies that faced difficulties due to client defaults.

For more detailed information about the project, inquiries can be made at the nationwide Credit Guarantee Fund branches.

A provincial official stated, “We will discover and promote various policies to enable SMEs in key local industries such as the automobile parts industry to conduct stable business activities.”

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