Major Corporations and Banks Join Forces: K-SURE's Mutually Beneficial Trade Finance Gains Momentum

Expanding Public-Private Cooperation through the Ginkgo Tree Forum
Supporting the K-Shipbuilding Supply Chain with HD Hyundai Heavy Industries and Hana Bank
Expanding to Semiconductors and Defense Industries, with a KRW 10 Trillion Support Target by Year-End

The mutually beneficial trade finance model established by Korea Trade Insurance Corporation (President Youngjin Jang, hereinafter referred to as K-SURE) has gained significant traction, attracting participation from major corporations and banks. By combining the contributions of large companies and banks with K-SURE's guarantee function, the model supplies substantial funding to small and medium-sized export businesses. This approach is evaluated as effectively boosting export competitiveness and stabilizing supply chains.

Jang Youngjin, President of Korea Trade Insurance Corporation (seventh from the left), is taking a commemorative photo with Na Sung-hwa, Director of Trade Policy at the Ministry of Trade, Industry and Energy (second from the left), Kim Jin-hong, Director at the Financial Services Commission (first from the right), and executives from nine specially contributed banks at the 3rd Eunpungnamu Forum held on June 16 at the Westin Chosun Hotel in Jung-gu, Seoul. Photo by KOTRA

The mutually beneficial trade finance program, known as SMILE (Supply-chain Miracle by Leverage), is a program in which large corporations or banks contribute funds to K-SURE, which then utilizes guarantee leverage to provide preferential financing to partner small and medium-sized enterprises (SMEs). The "Export Package Preferential Finance" program, based on bank contributions, supported 2,856 companies with KRW 2.2479 trillion from its launch in March last year through May this year. The "Export Supply Chain Strengthening Guarantee," jointly funded by large corporations and banks, has provided KRW 560.4 billion to 99 companies since its launch last year.

On June 16, K-SURE held the 3rd "Ginkgo Tree Forum" at the Westin Chosun Hotel in Seoul, together with the Ministry of Trade, Industry and Energy, the Financial Services Commission, and nine contributing banks, to discuss ways to further expand productive trade finance. The forum started with eight banks at its inception last year and has now grown to a nine-bank system with the participation of Toss Bank. Special contributions have increased from KRW 198 billion to KRW 273.2 billion, and the scale of support has expanded from 1,500 companies and KRW 1.2 trillion to 2,500 companies and KRW 2.2 trillion. K-SURE plans to further increase this to KRW 4 trillion in the future.

Youngjin Jang, President of the Korea Trade Insurance Corporation

A representative example of the mutually beneficial trade finance program is the shipbuilding supply chain support project involving HD Hyundai Heavy Industries and Hana Bank. The two organizations contributed KRW 28 billion, and K-SURE provided guarantees, creating a preferential financing pool totaling KRW 400 billion. Last month, Mibu Heavy Industries, the first company to benefit from this program, received KRW 5 billion in export funds under the conditions of a 100% guarantee ratio, a three-year waiver of guarantee fees, and preferential interest rates.

K-SURE is currently expanding the program to the automotive, steel, and consumer goods sectors in partnership with Hyundai Motor/Kia, HL Mando, POSCO, MUSINSA, Kolmar, and others, targeting a total supply of preferential financing amounting to KRW 2.4 trillion. There are also plans to broaden the scope to national strategic industries such as semiconductors, bio, and defense, with the goal of expanding the support volume to KRW 10 trillion within this year.

President Youngjin Jang of K-SURE stated, "We will further expand mutually beneficial trade finance based on cooperation among banks, companies, and K-SURE, supporting the growth of Korean businesses and strengthening the competitiveness of supply chains." He added, "We will continue to expand financial support to achieve 'export for all.'"

This content was produced with the assistance of AI translation services.