Korea Trade Insurance Corporation (K-SURE) said Tuesday it will provide $100 million in trade insurance to help domestic companies expand their share of Spain's smartphone market.
Under the arrangement, Spanish telecommunications companies will use trade insurance to secure financing when purchasing Samsung Electronics mobile devices.
Banks will extend payment terms using the trade insurance as collateral, easing the liquidity burden on importers at the time of purchase.
This marks the first time K-SURE has supported an exporter's overseas transactions through "reverse factoring," a method that helps importers securitize their accounts payable. K-SURE said it expects the support to strengthen the competitiveness of Korean companies in Spain, where rivalry with Chinese firms and others is intense.
"We will continue to actively drive Korean companies' entry into overseas markets through tailored trade insurance support for each export transaction," K-SURE President Jang Young-jin said.
oskymoon@heraldcorp.com
