Chungnam Expands Accounts Receivable Guarantees for Small and Medium Enterprises

Chungnam Province will expand the coverage of accounts receivable guarantees for local small and medium-sized enterprises (SMEs).

The province announced on the 20th that it will invest a total budget of 900 million KRW this year in the accounts receivable insurance premium support project to assist 140 companies.

This is an increase of 130 million KRW in budget and 23 more supported companies compared to last year, when 770 million KRW was spent to support 117 companies.

The support project is implemented to reduce the burden of accounts receivable insurance premiums for SMEs in the Chungnam region and to prevent a chain bankruptcy of companies in case of debtor default.

The province started this project in 2019 and has guaranteed a total of 2.2456 trillion KRW in receivables across 422 cases until last year. Additionally, it compensated 1.56 billion KRW to 16 companies that experienced debtor defaults.

The support target is SMEs engaged in manufacturing whose headquarters or main business sites are located in Chungnam. Eligible companies can receive support covering 60% of their accounts receivable insurance premiums within the support limit.

Moreover, companies receive a one-grade upgrade in credit guarantee screening, allowing benefits such as reduced credit insurance guarantee fees and discounted interest rates on securitized corporate bond guarantees.

The province plans to analyze support performance and corporate demand in the first half of the year to consider expanding the project, including increasing the budget.

For qualification requirements for insurance enrollment or other detailed information about the project, inquiries can be made through the Provincial Industry Promotion Division or the Daejeon Credit Insurance Center.