Korea Trade Insurance Corp. to Boost Liquidity Support for Small Defense Exporters

Korea Trade Insurance Corp. headquarters. [Photo=Korea Trade Insurance Corp.]

Korea Trade Insurance Corp. is stepping up support for small defense firms seeking overseas orders, aiming to broaden the export base of South Korea’s defense industry beyond large prime contractors.

The agency said on the 26th it will provide liquidity support to help Dasan Machining expand globally.

Under the program, K-SURE will guarantee losses tied to bank guarantees that importers often require when export contracts are signed. The arrangement is intended to raise the likelihood of closing export deals while freeing up funds that had been tied up as collateral at banks.

It is the first case of K-SURE directly supporting an export transaction by a small defense company since it set up a dedicated team last year to foster the defense industry.

K-SURE President Jang Young-jin said the support directly backs exports of finished defense products by small firms and promotes more balanced growth for K-defense exports. He said the agency will continue to provide support so Korean companies can play a leading role in the country’s push to become one of the world’s top four defense powers.

* This article has been translated by AI.

AJP