The Korea Trade Insurance Corporation (K-Sure) announced it will provide $100 million (approximately 80 million euros) in trade insurance to help domestic companies expand their market share in the European smartphone sector.
This support will utilize trade insurance to finance the purchase of Samsung mobile devices by a Spanish telecommunications company. Banks will extend the payment period for the importer by using the trade insurance as collateral, easing the liquidity burden for the Spanish telecom when purchasing products from domestic companies. Additionally, exporting companies will be able to secure export payments reliably in overseas transactions.
This marks the first instance of K-Sure assisting export companies in overseas transactions through a 'reverse factoring' method, which allows importers to adjust payment periods via financial institutions after purchasing goods, while supporting exporters in collecting payments securely.
K-Sure expects this support will bolster the local competitiveness of domestic companies in the fiercely competitive Spanish smartphone market, which faces challenges from China and other competitors. In the highly competitive global consumer goods market, not only product competitiveness but also the financial conditions that enable local telecoms and distribution networks to reliably import goods could significantly impact market share.
Jang Young-jin, president of K-Sure, stated, "This is a case of enhancing our companies' overseas competitiveness through trade insurance. We will continue to actively support our companies' entry into overseas markets with tailored trade insurance for each export transaction."
* This article has been translated by AI.
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