Sancheong-gun, First Mid-term Accounts Receivable Insurance Support at County Level in the Province

Signed Business Agreement with Credit Guarantee Fund

Expectations for Management Stability and Economic Revitalization

Sancheong-gun, Gyeongnam Province, is the first county-level local government in the province to support accounts receivable insurance for small and medium-sized enterprises (SMEs). On the 20th, the county signed a business agreement with the Korea Credit Guarantee Fund to support insurance premiums for SME accounts receivable insurance.

SME accounts receivable insurance is a public insurance system that compensates up to 80% of losses incurred when SMEs sell goods or services to clients but fail to collect payment.

Sancheong County Office Exterior View

Accordingly, the county aims to prevent a chain bankruptcy of local SMEs struggling due to worsening domestic and international economic conditions such as high inflation, high interest rates, and high exchange rates, and to support stable business operations.

The Korea Credit Guarantee Fund will handle premium discounts and payments for companies subscribing to the insurance. In particular, along with the 50% premium support under the agreement between the Korea Credit Guarantee Fund and Gyeongnam Province, this agreement provides an additional 20% premium support (up to 1 million KRW) from Sancheong-gun.

Moreover, if companies receive a 20% advance discount on the premium from the Korea Credit Guarantee Fund, they can subscribe to the insurance with only a 10% self-payment.

County Governor Lee Seung-hwa said, “Support for accounts receivable insurance is essential for stabilizing SME management by reducing financial risks for companies,” adding, “With stable management, aggressive marketing can lead to increased sales, which will also contribute to revitalizing the local economy.”

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