Guro-gu Supports Small and Medium Enterprises with Accounts Receivable Insurance Premiums

Only 10% Self-Payment for SMEs Subscribing to Accounts Receivable Insurance
Support Provided on a First-Come, First-Served Basis Until Budget Runs Out

Guro-gu (Mayor Jang In-hong) is providing support for accounts receivable insurance premiums to ensure stable management of small and medium-sized enterprises (SMEs).

Accounts receivable insurance is a public insurance system in which the Korea Credit Guarantee Fund compensates a portion of the losses incurred when SMEs sell goods or services on credit to clients and fail to collect the payment.

If a company subscribes to accounts receivable insurance, it can be compensated up to 80% of the transaction amount in case of losses due to credit sales. Moreover, when a company with accounts receivable insurance trades with another company, both companies can share the benefits of stable management, helping to prevent a chain of bankruptcies.

The support targets SMEs with annual sales under 50 billion KRW whose headquarters or main business sites are located in Guro-gu. Last year, 37 companies were supported.

When a company subscribes to accounts receivable insurance, the Korea Credit Guarantee Fund offers a 10% upfront discount on the calculated premium, and Guro-gu supports 20% of the discounted premium up to 2 million KRW per company.

Combined with support from Seoul City (up to 5 million KRW per company, 50% of the discounted premium) and Shinhan Bank (up to 4.5 million KRW per company, 20% of the discounted premium), the burden of accounts receivable insurance premiums for companies in the Guro-gu area is reduced to as low as 10%.

Support is provided on a first-come, first-served basis until the budget is exhausted. Companies wishing to participate can visit or call the Korea Credit Guarantee Fund branch or Credit Insurance Center within Seoul to apply for insurance and submit the required documents as instructed. For more details, inquiries can be made to the Korea Credit Guarantee Fund or checked on the Guro-gu Office website.

Jang In-hong, Mayor of Guro-gu, said, "I hope this support helps establish a stable management foundation," and added, "We will continue to provide necessary support for the sustainable growth of companies."