KOTRA and Mubo Provide 'First' Export Finance Support to Defense Export Partners

Issuance of the First 'Export Partner Guarantee' Certificate to the Polish K9 Export Project Partner

KOTRA, in collaboration with the Korea Trade Insurance Corporation, announced on the 19th that it has issued the first Export Partner Guarantee certificate to Youngpoong Electronics Co., Ltd., a defense small and medium-sized enterprise participating in the 'Poland K9 Export Project.' This is the first case of support under the export finance support program targeting defense export partners to foster the defense industry and activate exports by defense companies.

[Image source=Yonhap News]

The 'Export Partner Guarantee' is a program that provides working capital quickly and easily to partner companies participating in defense export projects after a preliminary review of the project.

KOTRA Defense Material Trade Support Center (KODITS) signed a memorandum of understanding (MOU) in April with four institutions?the Defense Acquisition Program Administration, Korea Trade Insurance Corporation, Shinhan Bank, and Gyeongnam Bank?under the Ministry of Trade, Industry and Energy to alleviate difficulties in financing such as high interest rates and lack of collateral faced by defense partners.

As a follow-up to the agreement, the Korea Trade Insurance Corporation established the Export Partner Guarantee program, and KOTRA Defense Material Trade Support Center promoted the program and supported its implementation phase by holding briefing sessions for partner companies in collaboration with defense export system companies.

Through the 'Export Partner Guarantee,' Youngpoong Electronics will be able to receive a loan of 3 billion KRW based on the contract amount signed with Hanwha Aerospace. Additionally, banks participating in the MOU provide preferential interest rates, reducing financial costs amid high interest rate conditions.

Kim Ho-sung, head of KOTRA Defense Material Trade Support Center, said, “To properly fulfill the largest-ever defense order contracts, the export performance capability of partner companies supplying to enterprises is very important,” adding, “We will strive to ensure that export finance is timely supported to small and medium-sized defense partners facing difficulties in financing.”

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