The state-run Korea Trade Insurance Corp., or K-sure, will offer a wide range of financial benefits to a select group of small and medium-sized local companies to help them reach the next stage of the global growth ladder.
The public corporation on Tuesday held the kickoff ceremony of its Global Growth Ladder Program, a multi-stage export financing project aimed at nurturing local champions into global players.
The event was attended by K-sure president Cho Kye-ryoong, Vice Trade Minister Kim Jae-hong, Korea Exchange Bank CEO Yun Yong-ro and the representatives of the participating companies.
The Global Growth Ladder Program, which is an extended version of the conventional Trade Champs Club, encompasses three groups based on their export performance level.
The Trade Beginners Club includes export novices that currently achieve less than $1 million in exports per year, while the Trade Small Giants Club covers those raking in between $1 million and $20 million.
These two grades, together with the conventional Trade Champs Club for the $50 million and above segment, aim to discover hidden local export champions that have the potential to succeed in the global market, if only with the right support.
The novice TBC is to enjoy the largest discount rate on trade insurance fees (up to 70 percent) while the TCC will be given the largest increase in the export credit insurance upper limit of up to 10 billion won ($9.3 million).
Also, all beneficiaries will be offered a relatively low interest rate when taking loans from banks and a priority in export support programs run by the Korea Trade-Investment Promotion Agency and the Korea International Trade Association.
“The program is the result of three-way cooperation, involving not only K-sure but also ministry-affiliated trade organizations and commercial banks,” said Vice Minister Kim.
“We encourage local companies to fully avail themselves of the system and boost their export sales during the remaining period of the year.”
In addition to the already selected 174 export champions, K-sure will select 40 more companies by October and further increase the number of beneficiaries to 300 by 2017, according to officials.
“As a state-run organization, it is our duty to discover potential champions and to help them step into the global market,” said the K-sure president.
“With the cooperation of the ministry of Trade Industry and Energy and other export promotion organizations, we will be able to achieve the goal at a minimized risk level.”
