Toward Higher Goal

KEIC sets its target export insurance 12 percent higher than last year

The Korea Export Insurance Corp.(President & CEO Kim Song-woong) plans to provide 82 trillion won to cover export insurance this year, up 12 percent from last year. The amount breaks down to 61.9 trillion won, up 15 percent from 2005, in short-term coverage and 4.6 trillion won in medium- to long-term coverage, up 21.5 percent from the preceding year.
KEIC's management strategy is called 4C movement: the first C is for customer to manage the company's organization and operation to focus on customer satisfaction as top priority. It calls for reforming customer service and making its organization and operation to be customer-friendly. It also means strengthening customer management and broadening customer base. The second C is for strengthening the company's support capability to expand the energy for economic growth. The company will increase support to major export industries including IT, shipbuilding, and plant industries, along with support tailor-made for growth of SMEs to become global. It also stands for strengthening its survey and analysis of overseas risk factor as an expert firm and boost its operational soundness.
The third C stands for competitiveness, calling for reform of company office processes to boost its management effectiveness. To bring that about, it calls for building the ISP to set up next generation information system and the introduction of the BSC system to focus on strategies and results. The strategy also is designed to reform management control process and office processes to raise productivity.
The fourth C stands for strengthening internal capability aimed at continued growth. It means managing resources focused on strategic business areas, along with a plan to advance various programs to train personnel and education system. It also means raising infrastructure for knowledge to maximize productivity and making reformative organization culture taking root in the company.
President Kim ,in his new year speech, predicted that change and reform will be needed for public firms this year. In this regard, the company will continue to make efforts to diversify customers for export insurance and export market and to cope wisely with rising demand for improved export insurance service by customers. Under the company's management target called, "System Reform for Boosting Competitiveness and Customer Satisfaction,"the president called on company officers and employees to make efforts to maximize management effectiveness through business process reform; To build a framework for personnel management and organization to support a result-centered personnel management; to try to make ISP/BSC Task Force more perfect as a system. Kim also called for increasing support to major export industries including IT, shipbuilding and plant industries , along with support for SMEs, and improving investigation and survey of overseas risk factors. He said the company should pay more attention to expanding overseas market and the development of the IT industry and make efforts to discover new blue ocean growth areas in the next five to 10 years. The company should also strengthen its support to plant and shipbuilding industries.
KEIC's insurance coverage amounted to 73.2 trillion won, equivalent to 20.1 percent of total exports last year with net profit amounting to 70.3 billion won, up about five folds from the preceding year if 13,8 billion won. Total export insurance coverage figure last year, represented an increase of 16.3 percent from the previous year and included 55.2 trillion won in short-term coverage, up 7.1 percent from 2004. The mid-to-long-term export insurance amounted to 3.8 trillion won, up 15.2 percent from the preceding year.
The company extended 32.9 trillion won in its export insurance to SMEs last year, up 22.3 percent year-on-year, accounting for 45 percent of total export insurance provided last year.
KEIC has reorganized its system by creating the customer assistance office designed to provide more support to its customers. The company is operating the management reform team, signaling that KEIC means to promote management reform perpetually not reform for the sake of reform, in reflection of President Kim's intention that he would not carry out reform just like an event. This shows that the company's management target outlined as "customer Satisfaction and Strengthening Competitive Power,"is not unrelated to its effort for reform. nw

KEIC President & CEO Kim Song-woong