Reliability Insurance Supporting Sobujang Companies: Increased Benefits and Lowered Enrollment Barriers

[Sejong=Asia Economy Reporter Kwon Haeyoung] Starting next month, the benefits of the 'Reliability Insurance' to support 소재·부품·장비 (SoBuJang, Materials, Parts, and Equipment) companies will be strengthened.

The Ministry of Trade, Industry and Energy announced on the 26th that it will extend the 'SoBuJang Reliability Insurance Support Pilot Project,' which was launched last September in collaboration with the Capital Goods Mutual Aid Association and Samsung Fire & Marine Insurance, until July next year while enhancing the insurance benefits.

The SoBuJang Reliability Insurance is a product that compensates for economic losses when unexpected defects occur in SoBuJang products purchased after performance verification by companies. It was established to support the commercialization and market entry of domestically produced SoBuJang products.

First, the insurance premium support rate will be raised from the previous 50% to 80%, and the support ceiling will be increased from 10 million KRW to 20 million KRW. The insurance period will also be expanded from the existing one-year term to a choice of one to three years.

The eligibility for subscription, which was previously limited to companies producing reliability-certified products, will be expanded to include companies with mass production performance certification in six major fields such as semiconductors, displays, automobiles, electrical and electronics, as well as representative certified companies in other industries. Insurance subscription is available through the Capital Goods Mutual Aid Association or Samsung Fire & Marine Insurance, a contracted private insurer.

An official from the Ministry of Trade, Industry and Energy said, "If actual beneficiary cases arise from this pilot project, related products will be further expanded to the private sector, and companies will be able to reduce risk burdens when adopting new SoBuJang products."