On June 10, K-Sure announced that Jang Young-jin, the corporation's president, visited Samdong, a mid-sized manufacturing company in Eumseong, to assess issues related to the operation of overseas subsidiaries and discuss plans for expanding liquidity support.
Samdong, a manufacturer specializing in electrical materials such as copper coils, operates production facilities in key locations in the United States, including Tennessee. With a surge in demand for electrical infrastructure in the U.S., the company secured $20 million in operating capital based on K-Sure's overseas business financing insurance.
Since June of last year, K-Sure has been running a special support program for operating capital aimed at local subsidiaries of South Korean companies. This program provides funding necessary for factory operations, as well as facility investments, with repayment terms exceeding two years to help address tariff challenges and stabilize global supply chains.
To date, the program has provided a total of $260 million in operating capital to ten local subsidiaries of South Korean companies operating in the U.S. and Vietnam.
In April, in response to a significant increase in funding demands from overseas subsidiaries, K-Sure raised the total support limit from $300 million to $800 million. The program has been adjusted to favor small and medium-sized enterprises (SMEs) and mid-sized companies that enter foreign markets alongside large corporations.
Specifically, subsidiaries backed by a parent company's payment guarantee can receive support of up to 30% of their revenue, while SMEs and mid-sized partners entering foreign markets with large corporations can receive up to 50% of their revenue.
Lee I-joo, CEO of Samdong, stated, "Thanks to K-Sure, we were able to respond promptly to the increasing demand for electricity in the U.S. As we anticipate continued growth in the electrical equipment market due to expanded investments in artificial intelligence infrastructure, ongoing financial support will be crucial for us."
Jang Young-jin emphasized, "Due to international geopolitical instability, the demand for operating capital among overseas subsidiaries is surging. We will provide comprehensive support to ensure that our companies do not face difficulties in their overseas operations due to a lack of financial assistance."
* This article has been translated by AI.
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