Seongnam City Provides Up to 1 Million Won Export Insurance Fee Support for Small and Medium Enterprises

Support for 50 Companies with a 50 Million KRW Budget
Strengthening the Export Safety Net and Supporting Overseas Market Entry

Seongnam City, Gyeonggi Province (Mayor Shin Sang-jin) announced on the 24th that it will implement the ‘Small and Medium Enterprise Export Insurance Premium Support Project’ to help local export companies prepare for various risks such as non-receipt of export payments.

Seongnam City Hall view. Provided by Seongnam City

The support targets export SMEs with headquarters or factories located in Seongnam City. Companies that have subscribed to the Korea Trade Insurance Corporation’s short-term export insurance (general type, SME Plus type), group export insurance, or export credit guarantees (before and after shipment) can receive insurance premium support of up to 1 million KRW per company.

The short-term export insurance (general type) is a system that compensates for losses when exporters do not receive payment from importers without any fault of their own. The SME Plus type compensates for losses caused by coverage risks selected by the contract holder, such as risks in the importing country.

Group export insurance is an insurance product where Seongnam City acts as the contract holder and local companies join together. The pre-shipment guarantee provides joint guarantees by the Korea Trade Insurance Corporation when export companies obtain loans from financial institutions for funding, and the post-shipment guarantee provides joint guarantees when export receivables are purchased.

This project will be conducted throughout the year until the budget is exhausted, with a total budget of 50 million KRW supporting about 50 companies.

Companies wishing to apply can check detailed information on the ‘City News · Announcements’ board on the Seongnam City Hall website, and applications can be submitted through the Korea Trade Insurance Corporation Gyeonggi Southern Branch.

Last year, Seongnam City also supported export insurance premiums worth 50 million KRW for a total of 113 companies, and through this project, it plans to strengthen the export safety net for local companies and actively support their entry into overseas markets.