Gyeonggi Province Expands 'Foreign Exchange Fluctuation Insurance Support Project for SMEs' to Include Import Companies

Up to 20 Million Won in Foreign Exchange Risk Insurance Premium Support by Gyeonggi Province
Applications Open from July 1 via Gyeonggi Business Secretary Website

Starting July 1, Gyeonggi Province will expand the scope of its 'Foreign Exchange Fluctuation Insurance Support Project for Gyeonggi SMEs' to include small and medium-sized import enterprises.

Foreign Exchange Insurance Support Project Poster. Provided by Gyeonggi Province

Previously, since February, the province has been providing support for insurance premiums to export-oriented SMEs subscribing to foreign exchange fluctuation insurance. By May, a total of 846 million won in insurance premiums had been supported for 60 companies. Among these, 24 companies received a total of 325 million won in insurance payouts due to actual foreign exchange losses.

This expansion of support is a measure taken in consideration of the need to protect import SMEs exposed to foreign exchange risks, due to global supply chain instability, surging prices of imported raw materials, and sharp exchange rate fluctuations. It reflects suggestions from businesses raised at the Gyeonggi Emergency Livelihood Economy Meeting held in December last year.

Eligible applicants are SMEs with factories or business sites located in Gyeonggi Province that have subscribed to the 'Option-Type Foreign Exchange Fluctuation Insurance' operated by the Korea Trade Insurance Corporation. After paying the insurance premium in advance, companies can apply for support by submitting the payment receipt and other required documents to the Gyeonggi Institute of Economic Science and Technology. Support is provided for insurance premiums up to a maximum of 20 million won per company (until the budget is exhausted), and partial applications are also possible.

Applications can be submitted online by searching for 'Foreign Exchange Fluctuation Insurance Support Project' on the Gyeonggi Business Secretary platform. For related inquiries, companies can contact the Export Marketing Team at the Gyeonggi Institute of Economic Science and Technology. Companies facing difficulties related to exports or imports can also seek consultation through the One-Stop Comprehensive Support Center for Business Difficulties.

Jung Dooseok, Director of Economic Affairs for Gyeonggi Province, stated, "Exchange rate instability is a significant burden not only for export companies but also for SMEs with a high dependence on imports. Through this expansion of the project, we hope to enhance the overall foreign exchange risk response capacity of SMEs in the province, enabling them to grow stably without being shaken by exchange rate fluctuations."