Seongnam City in Gyeonggi Province will support export insurance premiums for small and medium-sized enterprises (SMEs) up to 1 million KRW.
Seongnam City announced on the 15th that it has secured a budget of 50 million KRW for the SME export insurance premium support project and will carry out the related project until November 30.
With the supported export insurance premiums, companies can subscribe to five types of insurance products operated by the Korea Trade Insurance Corporation, including export credit guarantees (pre-shipment and post-shipment), short-term export insurance (general, SME Plus+), and group export insurance.
The export credit guarantee (pre-shipment) insurance product provides joint guarantees by the Korea Trade Insurance Corporation to help companies obtain loans from financial institutions when they lack funds to procure export goods.
The export credit guarantee (post-shipment) insurance product provides joint guarantees by the Korea Trade Insurance Corporation when financial institutions purchase export receivables based on shipping documents.
The short-term export insurance (general) product compensates companies for losses when exporters fail to receive payment from importers without the exporters' fault after exporting goods.
The short-term export insurance (SME Plus+) product pays companies 100% of the loss amount within the liability limit when losses occur due to collateral risks such as selected importers, letters of credit, or importing countries chosen by the policyholder.
Group export insurance is an insurance product where Seongnam City acts as the policyholder and SMEs join as a group. Companies can receive insurance payments covering up to 95% of losses within a maximum of 50,000 USD in case of export payment default risks.
The eligible recipients for each export insurance premium support are SMEs with headquarters or factories located in Seongnam City.
Meanwhile, last year, Seongnam City supported export insurance premiums worth 50 million KRW for 114 SMEs.
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