K-sure Expands Insurance Coverage

The new areas include exports of nuke plants, ships and power plants and imports of goods

Korea Trade Insurance Corp. (K-sure) changed the abbreviation of its name to K-sure in July 2010 in its determination to be at the forefront of leading the nation's exports to the $1 trillion mark this year in line with the era of the fusion of trade and investment as a professional organization taking charge of trade insurance.
In 2010, exports accounted for 46 percent of GDP, showing that foreign trade is an absolute necessity for the growth of the Korean economy. Trade insurance is a system designed to make up for the losses by banks and exporters due to wars, internal strife and economic problems including the shortage of foreign exchange in importing countries. The insurance coverage is wide ranging from consumer products such as televisions, IT products, textiles and clothing to overseas investment by business firms in such areas as natural resources exploration, investments in capital goods such as ships and plants, to knowledge and cultural contents including technology, software, films and games. From 2007, K-sure provided 659 trillion won worth of insurance coverage. In 2010, the company's trade insurance totaled 187 trillion won, making it the seventh largest in the world in terms of volume for the first time.
In July 2010, K-sure launched insurance coverage for imports, declaring the start of its elevation to integrated trade insurance entity. Import insurance covers importers'prepayment for key goods they import as protection for importers and banks against the bankruptcies of Korean exporters and the inability to recover their advance payments. In 2010, the company provided coverage for 49.7 billion won worth of imports, and this year, the company secured 1.2 trillion won in funds for the extension of trade insurance, especially in such areas as exports of plants, shipbuilding and the development of investment by setting up a special unit to take charge of the new areas of insurance coverage overseas to pave the way for Korean firms' operational expansion.
The company also set up a new unit last year to provide insurance to such critical areas as new and recycled energy, high-speed rail construction and nuclear power plant construction exports whose financial needs have been rising. In February this year, the company concluded MOUs for tie-ups with 26 foreign commercial banks to expand project financing support, which are intended to support the overseas operation of Korean firms by expanding K-sure's financial network overseas.
As a result of such effort, a number of Korean projects overseas such as the Jubail project in Saudi Arabia, the Thang Long Cement Plant Project in Vietnam and the PetroBras Drill Ship Project in Brazil were selected in April by Trade Finance, a global financial publication, as Deal of the Year 2010. The global financial magazine named K-sure as Best Asian ECA in June, boosting its international position, confirming its ability to provide trade finance.
K-sure has become an Export Trade Agency (ECA) providing credit insurance, guarantee insurance and loans to support Korean firms'exports and overseas investments as called for in this changing era and to realize its new vision as a super first-rate trade and investment insurance entity leading Korea to maintain its status as a super strong trading nation. nw

President Cho Kye-ryoong of Korea Trade Insurance Corp.

Key officials of K-sure led by President Cho following a rally to lead Korea's exports to reach $1 trillion this year.

Photo on Courtesy of K-sure