Mubo Visits Secondary Battery Production Equipment Export Companies... "Will Seek Post-Semiconductor"

[Asia Economy Reporter Kim Bo-kyung] The Korea Trade Insurance Corporation conducted a 'Visit to Export Site CEOs' on the 27th to directly observe export sites struggling due to the novel coronavirus disease (COVID-19) and to hear voices for fostering new industries.

On this day, the visited export small and medium-sized enterprise (SME) 'Clever,' located in Cheongju, Chungbuk, manufactures folding equipment, the finishing process for secondary battery production, mainly supplying SK Innovation's overseas business sites.

Jung Jong-hong, CEO of Clever, explained the recent business status, saying, "We suffered damage due to delays in transactions with buyers in China and Europe caused by the spread of COVID-19," and added, "During the time when cash management became difficult due to plans to expand the second factory, the Korea Trade Insurance Corporation's prompt guarantee support acted as a lubricant for cash flow."

He further emphasized, "The secondary battery industry is a fiercely competitive future new industry among Korea, China, and Japan, requiring intensive fostering and support to secure market dominance and technological advancement."

The Korea Trade Insurance Corporation promised to strive to ensure that the technological capabilities and potential of new industries are not damaged and that growth momentum is maintained despite the COVID-19 crisis. In particular, CEO Jung was provided with consulting for broad utilization of trade insurance, including 'Export Receivables Early Cash Conversion Guarantee' to secure liquidity and 'Short-term Export Insurance' to prepare for cases when export payments are not collected.

The Korea Trade Insurance Corporation has steadily increased support every year to foster 12 new industries, including secondary batteries, with 11.9 trillion won in November 2018 and 14.2 trillion won last year. The 5.1 trillion won supported until April this year is a 22% increase compared to the same period last year.

Additionally, preferential support is provided to export companies of new industry items, such as 1.5 times insurance limits and a 20% discount on insurance premiums for small and medium-sized enterprises and mid-sized companies. In December last year, a dedicated task force (TF) for new industry support was formed to accelerate system improvements and promotion.

Lee In-ho, president of the Korea Trade Insurance Corporation, stated, "Secondary batteries, known as the 'rice of future industries' widely used in the new normal era, surpassed the existing mainstay product, home appliances (6.96 billion dollars), with an export scale of 7.42 billion dollars last year," and added, "We will fulfill our role to ensure that preparations for the future, such as finding the 'post-semiconductor,' are not neglected."