Yongin City Supports SMEs with 'Accounts Receivable Insurance Premium'

Compensation for Payment Collection Risk in Credit Transactions
20% Insurance Premium Support Within a Limit of 2 Million KRW

Yongin City in Gyeonggi Province announced on the 28th that it will support 'accounts receivable insurance premiums' to reduce the risks faced by small and medium-sized enterprises (SMEs) due to credit transactions.

Accounts receivable insurance is a public insurance that compensates up to 80% of losses through the Korea Credit Guarantee Fund if payment is not collected after providing goods or services to a client.

The city has signed an agreement with the Korea Credit Guarantee Fund to support companies that hesitate to subscribe due to the burden of insurance premiums. Eligible recipients are SMEs in manufacturing and wholesale/retail sectors with annual sales under 30 billion KRW, headquartered or primarily operating in the city.

The Korea Credit Guarantee Fund offers a 10% discount on the insurance premium, and the city supports 20% of the calculated premium up to a limit of 2 million KRW. Additionally, SMEs located in the city can receive further support from Gyeonggi Province (50%, up to 2 million KRW) and Shinhan Bank (20%), allowing for up to 90% coverage of the insurance premium.

For example, if the insurance premium is calculated at 4 million KRW, the Korea Credit Guarantee Fund provides a 10% discount, and Gyeonggi Province, Yongin City, and Shinhan Bank cover 90% of the premium, so the company only needs to pay 360,000 KRW.

Companies wishing to subscribe can contact the Korea Credit Guarantee Fund Gyeonggi Credit Insurance Center.

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