'Smart Farm and Nongigye' Export Companies Receive Trade Insurance Benefits... 20% Discount on Premiums

From the 3rd of this month, export companies in the intelligent farm (smart farm) and agricultural machinery sectors will receive preferential treatment when subscribing to trade insurance, including a 20% discount on premiums.

The Ministry of Agriculture, Food and Rural Affairs and the Ministry of Trade, Industry and Energy announced on the 2nd that they have established a trade insurance preferential program for 22 types of agricultural machinery such as tractors and loaders, as well as smart farm equipment (irrigation systems, sensors, etc., totaling 169 items), which will be fully implemented from the 3rd.

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Export companies in the smart farm and agricultural machinery sectors will receive preferential treatment when subscribing to the Korea Trade Insurance Corporation's short-term export insurance starting April 3rd. Short-term export insurance is a product that compensates for losses incurred when Korean companies cannot receive export payments from importers after shipping export goods. Export companies in the smart farm and agricultural machinery sectors will benefit from a 20% discount on premiums, up to double the subscription limit, and up to 1.5 times the compensation limit.

The Ministry of Trade, Industry and Energy and the Ministry of Agriculture, Food and Rural Affairs have been expanding cooperation since June last year to increase exports of smart farms and agricultural machinery, including designating smart farm-focused support trade offices and dispatching shuttle economic cooperation delegations to the Middle East. This trade insurance preferential treatment is also part of such inter-ministerial cooperation.

Lee Sang-man, Director of the Food and Agriculture Innovation Policy Division at the Ministry of Agriculture, Food and Rural Affairs, stated, "Smart farms and agricultural machinery are key sectors in the upstream and downstream industries of agriculture and food exports, and are promising items expected to see export growth in the future." He added, "Through this inter-ministerial cooperation, we expect it will help reduce trade risks for export companies and enhance the utilization of trade insurance."