Import insurance limit up to doubled, premiums cut 20%

Letter of credit fees, loan rates discounted

Targets small and midsize manufacturers in semiconductors and beyond

KOTRA's headquarters in Yangjae, Seoul. [KOTRA]
KOTRA's headquarters in Yangjae, Seoul. [KOTRA]

Korea Trade-Investment Promotion Agency (KOTRA) announced Thursday that it has signed an MOU with Korea Trade Insurance Corporation (K-SURE) and Woori Bank to provide financial support for small and midsize manufacturers of materials, parts and equipment seeking to import raw materials.

The agreement aims to strengthen supply stability for small and midsize manufacturers in sectors such as semiconductors and secondary batteries amid ongoing geopolitical uncertainty and global supply chain restructuring. The three institutions will combine their overseas supply chain intelligence, guarantee capacity and financial resources to jointly handle everything from identifying eligible companies to delivering financial benefits.

Under the arrangement, KOTRA will screen and refer qualified companies — including participants in its import source diversification support project and leading supply chain stabilization businesses — to K-SURE and Woori Bank, which will then provide the financial support.

K-SURE will apply preferential terms under its import insurance (global supply chain) program, raising each company's import insurance limit by up to double, increasing the coverage ratio from 90 percent to 95 percent and cutting import insurance premiums by 20 percent. Woori Bank will offer a 0.2 percentage point discount on letter of credit issuance fees and a 1 percentage point preferential rate on import settlement loans. The bank will also cover the first installment of import insurance premiums up to 40 million won ($29,900).

Eligible companies will be recruited on a semiannual basis. KOTRA will promote the program to customers of its global supply chain business team and accept applications by email. During the selection process, K-SURE and Woori Bank will review guarantee limits and loan eligibility based on each applicant's financial standing.

KOTRA said it expects the support package to ease the financing burden on companies that urgently need liquidity when importing raw materials. The agency added that the program will also help companies secure alternative import sources and stable inventory, strengthening their resilience in the face of shifting external conditions.

"This public-private one-team collaboration among three institutions will serve as a supply chain lifeline for our small and midsize materials, parts and equipment companies struggling with external instability," said Kim Gwan-muk, KOTRA executive vice president and head of the economic security and trade cooperation division. "We will continue to expand cooperation with policy finance institutions and commercial banks to actively support companies in securing global supply chain competitiveness."

Meanwhile, KOTRA is also stepping up support for small merchants, co-hosting a series of regional briefing sessions across 12 locations nationwide through December together with the Korea Federation of Small and Medium Business and local partner organizations.


eyre@heraldcorp.com