Korea Trade Insurance Issues First "Export Supply Chain Enhancement Guarantee"...Provides Export Financing to POSCO SME Partners

KTIC to Provide 354 Billion Won in Preferential Guarantees
Supporting Responses to Global Uncertainties Such as Tariffs and Decarbonization

Korea Trade Insurance Corporation has begun full-scale support for the steel industry, targeting small and medium-sized enterprises (SMEs) that are partners of POSCO.

The corporation announced on the 12th that it had issued the first guarantee certificate under the "Export Supply Chain Enhancement Guarantee" program, aimed at supporting the steel industry, for POSCO's SME partners.

Under this program, POSCO and Industrial Bank of Korea jointly contribute a total of 20 billion won to Korea Trade Insurance Corporation, which then uses these funds as capital to provide preferential guarantees totaling 354 billion won to POSCO's SME partners. The program was established to support balanced growth between large corporations and SMEs within the steel industry ecosystem at a time when external uncertainties are increasing due to tariff barriers, decarbonization regulations, and global oversupply.

TGS Pipe, selected as the first guaranteed company, has secured 1 billion won in export funds and will benefit from an increased guarantee ratio (from 90% to 100%), reductions in guarantee fees (up to 40 million won per company), and preferential loan interest rates, enabling it to obtain export financing on favorable terms. TGS Pipe purchases steel produced by POSCO, manufactures steel pipes, and exports them to countries such as Japan and the United States. The company plans to use the support funds from Korea Trade Insurance Corporation for product development and exploring new markets.

As part of its policy to promote productive finance last year, Korea Trade Insurance Corporation launched the "Export Supply Chain Enhancement Guarantee" by attracting contributions to the trade insurance fund from large corporations and financial institutions. Currently, in addition to POSCO, the program is being operated for partners of Hyundai Motor, Kia, and HL Mando, and the corporation plans to provide a total of 1 trillion won in preferential financing to SME partners in the future.

Jang Youngjin, President of Korea Trade Insurance Corporation, said, "I hope this support will serve as a starting signal for restoring the competitiveness of steel exports," adding, "We will continue to work so that companies can tangibly experience the benefits of improved trade insurance through close cooperation with private companies and financial institutions."