Korea Trade Insurance Corporation and Banks Collaborate to Enhance Export Financing

Korea Trade Insurance Corporation (K-Sure) has partnered with banks to enhance export financing support for small and medium-sized enterprises (SMEs). Amid increasing uncertainties in the global trade environment, K-Sure aims to expand collaborative trade financing and strengthen support for regional exporters.

On June 16, K-Sure held the 3rd 'Bank Tree Forum' at the Westin Chosun Hotel in Jung-gu, Seoul, where officials from nine banks contributing to the trade insurance fund, along with representatives from the Ministry of Trade, Industry and Energy and the Financial Services Commission, discussed measures to support export businesses.

Launched in May 2022 under the slogan 'Trade Insurance Shared with Banks,' the Bank Tree Forum serves as a collaborative platform for the government and financial sector. It has been recognized for its role in quickly incorporating on-the-ground feedback into policies and systems.

During the forum, the operational achievements and future improvements of the 'Collaborative Trade Financing (SMILE: Supply-chain Miracle by Leverage)' program were key discussion points. This program combines bank and large enterprise contributions with K-Sure's guarantees to assist financing for collaborating SMEs.

K-Sure is also introducing flexible financial support measures in response to rapidly changing external conditions. It has improved its 'Customized System for Local Subsidiaries' to assist Korean companies operating abroad and is expanding support for companies facing challenges in securing raw materials due to supply chain disruptions by offering preferential import financing limits.

The scope of support will also extend to local areas. K-Sure plans to introduce a new 'Preferential Financing Program for Regional Export Companies' based on contributions from local governments. This initiative aims to bolster the export competitiveness of regional SMEs and stimulate local economies, which often face relatively lower access to financial resources compared to the capital region.

Jang Young-jin, President of K-Sure, stated, "Through the Bank Tree Forum, a public-private partnership model has been established that reflects the needs of banks and addresses on-site challenges in real-time. We will continue to actively support the growth of our companies and the expansion of exports through collaborative trade financing involving banks, businesses, and our corporation."