On July 24, IBK Industrial Bank of Korea announced that it will introduce the Export Credit Guarantee (Comprehensive Purchase) product from the Korea Trade Insurance Corporation to support liquidity for exporting small and medium-sized enterprises (SMEs).
The Export Credit Guarantee (Comprehensive Purchase) allows exporters to cash in export receivables early with a single guarantee certificate, unlike the existing export credit guarantee products, which required the issuance of a separate credit guarantee certificate for each importer in order to guarantee the purchase of export receivables.
The Export Credit Guarantee (Comprehensive Purchase) can be applied to export transactions without a letter of credit, where the loan period is within 180 days and the loan is executed within 90 days from the reference date, such as the shipping date or the date of goods receipt.
IBK Industrial Bank of Korea has made it possible for applicant companies to estimate their expected guarantee limits during consultations with the bank, based on the guarantee limits disclosed by the Korea Trade Insurance Corporation, allowing for a prompt determination of guarantee eligibility.
An official from IBK Industrial Bank of Korea stated, "We hope that the newly introduced export credit guarantee product will help companies that are just starting out in exports and lack sufficient collateral, as well as those planning to expand their export sales networks, to secure stable funding."
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