Seongnam City to Provide Up to 1 Million Won in Export Insurance and Guarantee Fees for SMEs

Supporting Exporters Against Non-Collection Risks
Facilitating Expansion into Overseas Markets

Seongnam City in Gyeonggi Province has announced the implementation of the "SME Export Insurance and Guarantee Fee Support Project" to ensure stable overseas transactions and enhance the export competitiveness of local exporting companies.

Seongnam City Hall, provided by Seongnam City

The program is available to small and medium-sized exporting enterprises headquartered or with factories located in Seongnam City. Companies enrolled in Korea Trade Insurance Corporation's (K-SURE) short-term export insurance (standard or SME Plus), group export insurance, or export credit guarantee (pre-shipment or post-shipment) are eligible to receive insurance and guarantee fee support of up to 1 million won per company.

The standard type of short-term export insurance compensates for losses incurred when export payments are not collected from export contracts with payment terms of two years or less. The SME Plus type compensates for losses arising from selected covered risks on export transactions executed (shipped) within a one-year insurance period, within the annual liability limit.

Group export insurance is an insurance product in which Seongnam City acts as the policyholder, allowing local companies to join together. The export credit guarantee is a system in which Korea Trade Insurance Corporation provides joint guarantees when export companies raise funds through loans from financial institutions or export receivables purchases, with support provided at both pre-shipment and post-shipment stages.

This project will operate throughout the year until the allocated funds are exhausted, with a total budget of 50 million won to support approximately 120 companies.

Companies wishing to apply can review detailed information on the Seongnam City Hall website or the Korea Trade Insurance Corporation website, and then submit their applications via fax to the Gyeonggi Southern Branch of the Korea Trade Insurance Corporation.

Last year, Seongnam City also supported 112 companies with export insurance premiums totaling 50 million won. Through this project, the city aims to further strengthen the export safety net for local businesses and actively support their entry into overseas markets.

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