No More Worries About Closure or Bankruptcy... Yeongju City Supports 'Accounts Receivable Insurance Premiums' for Local SMEs

Reducing Corporate Financial Risks
Enroll with Only 10% Self-Payment

Yeongju City (Mayor Park Namseo) announced on the 12th that it will implement a 'Sales Receivables Insurance Premium Support Program' to prevent a chain of bankruptcies among small and medium-sized enterprises (SMEs) caused by client defaults, amid prolonged economic stagnation and increasing domestic and international economic uncertainties.

The 'SME Sales Receivables Insurance System' is an insurance program that compensates up to 80% of losses when a company is unable to recover payments due to a client's closure, bankruptcy, corporate rehabilitation, or delayed payments.

To alleviate the insurance premium burden for local SMEs and support more stable business operations, the city has signed an agreement with the Korea Credit Guarantee Fund to subsidize up to 90% of the cost of subscribing to sales receivables insurance.

The support is available to SMEs with business locations in Yeongju City and will be provided on a first-come, first-served basis until the budget is exhausted.

The insurance premium support is composed of 10% from the Korea Credit Guarantee Fund, 20% from Yeongju City (up to 2 million KRW), 50% from Gyeongsangbuk-do Province (up to 3 million KRW), and 20% from Shinhan Bank. As a result, companies only need to cover 10% of the total insurance premium themselves to enroll.

Companies wishing to subscribe to sales receivables insurance can contact the Credit Guarantee Fund's Credit Insurance Center or the Yeongju City Business Support Office for consultation on the subscription process, support methods, and eligibility requirements.

Kim Myeongja, Head of the Business Support Office, said, "We hope that this support for sales receivables insurance premiums will help reduce the risks of credit transactions and alleviate the financial burden on SMEs," adding, "We will continue to prepare various support measures to ensure business stability and enhance competitiveness for companies."

Yeongju City Hall.

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