Seongnam City in Gyeonggi Province is implementing a support program for export insurance premiums to help local export companies prepare for risks such as non-recovery of export payments.
The program targets small and medium-sized export enterprises with headquarters or factories located in Seongnam City. The support scale is about 50 companies, with a maximum support amount of 1 million KRW per company.
With the supported export insurance premiums, companies can subscribe to five types of insurance products operated by the Korea Trade Insurance Corporation, including ▲Short-term Export Insurance (General, SmallPlus+) ▲Group Export Insurance ▲Export Credit Guarantee (before and after shipment).
General short-term export insurance is a product that pays the amount corresponding to the loss when the exporter does not receive payment from the importer without the exporter’s fault after exporting goods.
The SmallPlus+ insurance compensates for losses arising from coverage risks selected by the policyholder, such as letter of credit risks and import country risks.
Group export insurance is an insurance product where Seongnam City acts as the policyholder and local companies join collectively.
Pre-shipment export credit guarantee is a system that provides joint guarantees so that export companies can receive loans from financial institutions when they lack funds to procure export goods. Post-shipment export credit guarantee is a system that provides joint guarantees when financial institutions purchase export receivables based on shipping documents.
Seongnam City has allocated a budget of 50 million KRW for this project. Meanwhile, last year, Seongnam City supported export insurance premiums totaling 50 million KRW for 105 companies.
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