KOTRA, Korea Eximbank, and Hana Bank Sign MOU for Export-Finance Package Support

Export Insurance, Credit Guarantees, and Loan Package Support
for Companies Participating in KOTRA's Overseas Branch Program
Eliminating Payment Risk with Short-term Export Insurance

The Korea Trade-Investment Promotion Agency (hereinafter "KOTRA") has joined forces with the Korea Trade Insurance Corporation (hereinafter "Korea Eximbank") and Hana Bank to support the stable overseas expansion and export growth of companies.

On May 11, the three organizations signed a memorandum of understanding (MOU) at KOTRA's headquarters to establish a collaborative system for supporting domestic companies' entry into overseas markets. The key point is that KOTRA, Korea Eximbank, and Hana Bank will offer an "Export Support Package Finance," which includes export group insurance and export credit guarantees, to companies participating in KOTRA's Overseas Branch Establishment Program.

KOTRA, the Korea Trade Insurance Corporation, and Hana Bank signed a business agreement (MOU) to support domestic companies on the 11th at KOTRA. Sangyeop Kang, Vice President of KOTRA and Head of the Small and Medium Enterprises Division (center), Jinwook Jang, Vice President of the Korea Trade Insurance Corporation (right), and Junghyun Lee, Head of the Foreign Exchange Business Group at Hana Bank (left), are posing for a commemorative photo after signing the agreement. Photo by Korea Trade-Investment Promotion Agency

Under the specific terms of the agreement, Korea Eximbank and Hana Bank will provide: ▲ support for short-term export insurance (group insurance) and ▲ loan financing for credit guarantees and liquidity supply to companies participating in KOTRA-supported overseas branch establishment programs. Through this, tangible services are expected to be provided to exporting companies struggling with the risk of uncollected export payments and difficulties in securing operating funds.

Under this agreement, Korea Eximbank will offer up to double the existing credit guarantee limit, and Hana Bank will fully cover export insurance premiums and credit guarantee fees (up to 50 million won per year) for participating companies conducting export-import transactions with the bank. In addition, since the short-term export insurance is provided in a group policy format, the procedures are simpler than individual subscriptions, which is expected to be advantageous for companies.

Going forward, KOTRA plans to conduct a survey to assess the demand for "Export Package" financial support among companies participating in the Overseas Branch Establishment Program, and will select and support companies in consultation with Korea Eximbank and Hana Bank.

Sangyeop Kang, Vice President of KOTRA and Head of the SME & Mid-sized Enterprise Headquarters, stated, "As the global trade environment changes rapidly, it is meaningful that the public and private sectors are collaborating to provide practical support to companies," and added, "We will continue to strengthen cooperation with related organizations so that Korean companies can pursue overseas expansion more stably."

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