According to Yonhap News,
(SEOUL=Yonhap News) The Ministry of Trade, Industry and Energy (MOTIE) announced on the 20th that it would support export companies with trade insurance of KRW 155 trillion early next year to maintain the country's export growth momentum.
According to the 2019 economic policy announced earlier, the financial policy set for export companies next year amounts to KRW 217 trillion, a KRW 12 trillion increase from this year's amount. From the total, trade insurance amounts to KRW 155 trillion, with a KRW 10 trillion increase compared to this year's.
The Ministry and the Korea Trade Insurance Corporation (K-sure) have done many surveys and meetings with export companies, which showed many companies' request for K-sure to increase risk protection and alleviate the burden of insurance premiums.
As a result, K-sure will increase premium discount rate from 30% to 35% to SMEs facing difficulties in doing business, and maintain a 30% discount rate for mid-sized companies.
In addition, it will provide a one-year extension of the export credit guarantee limit of KRW 300 million for small export companies, to minimize the risk of capital shock coming from downsized insurance limit.
The policy also includes six short-term support measures that goes into effect on the 1st or from mid January, which includes the reduction of SMEs' burden on insurance premiums; expansion of credit limit to importers with weak credits; special insurance limit for exports to companies' overseas subsidiaries; and special treatment for companies advancing into the strategically important emerging markets.
According to the Ministry, the measures are designed to counteract the worsening foreign trade conditions such as the proliferation of protectionism and global economic recession, as well as to increase exports by improving the management conditions of export companies suffering from minimum wage increase and raw material price increase.
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Source: Yonhap News (December 20, 2018)
** This article was translated from Korean.