Yongin City to Subsidize Up to 2 Million Won for SME Accounts Receivable Insurance Premiums

Up to 20% of Calculated Insurance Premiums
Maximum Support of 2 Million Won Per Company

Yongin Special City (Mayor Lee Sangil) announced on April 3 that it will provide support for local small and medium-sized enterprises (SMEs) by subsidizing up to 2 million won per company for accounts receivable insurance premiums.

Yongin Special City Hall Exterior. Provided by Yongin City

Accounts receivable insurance is a public insurance system in which the Korea Credit Guarantee Fund compensates up to 90% of losses incurred by SMEs when they are unable to collect payment on goods or services sold on credit to clients.

The support is available to SMEs located in Yongin with annual sales of less than 50 billion won.

If a company faces crises such as a client’s closure, bankruptcy, rehabilitation or bankruptcy filing, or payment delays, it can file a claim for insurance benefits.

The Korea Credit Guarantee Fund provides a 10% discount on insurance premiums, and the city offers additional support for 20% of the calculated insurance premium, up to a maximum of 2 million won.

For information on enrolling in accounts receivable insurance or further details, companies can contact the Gyeonggi Credit Insurance Center of the Korea Credit Guarantee Fund for consultation.

An official from Yongin City stated, "By combining the city’s maximum support of 2 million won with Gyeonggi Province’s maximum support of 2 million won, companies can receive support within a limit of 4 million won. We hope this assistance will help stabilize business operations at a time when supply chain crises caused by the Middle East conflict have heightened the risk of payment defaults from clients."

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