Institution details
KSURE - Korea Trade Insurance Corporation (K-SURE)
Key facts
- Established in 1992
- Ownership: Public
Part of the OECD
Part of the Berne Union
- 14, Jong-ro, Jongno-gu, Seoul, 03187
- +82 2 399 6800/6801
- https://www.ksure.or.kr/en/index.do
Latest update: 03/12/2021
rating type | rating agency | type | rating |
---|---|---|---|
Institution rating | S&P | Foreign currency | AA |
Country rating | S&P | Local currency | AA |
Products
- Buyer credit
- Supplier credit
- Interest rate risk insurance
- Overseas business credit insurance
- Overseas natural resources development fund insurance
- Overseas construction works insurance
- Overseas investment insurance (investment financing)
- Service export credit insurance
- Other products
Buyer credit
- Medium- and long-term buyer credit:
- Covers financial institutions at home or abroad providing buyer credits against nonpayment by importers or importing countries’ financial institutions for a Korean export transaction
- Cover: Commercial and political risks
- Tenor: Over 2 years - Short-term buyer credit:
- Cover for a financial institution lending directly to an importer or to a local bank that on-lends to the importer (bank-to-bank structure)
- Amount covered: Principal and interest
- Premium: Calculated as a function of the product (direct vs. indirect loan) and whether the policyholder subscribes to comprehensive cover
- Premium payment: At least 60% of annual premium must be paid within 30 days of policy issuance
Supplier credit
- Insures Korean exporters against the risk of nonpayment of accounts receivable from foreign buyers
- Cover: Commercial and political risks
- Short-term:
- Applies to insuring importers and issuing bank L/Cs
- Tenor: Up to 2 years - Medium- and long-term:
- Focused on the EPC and shipbuilding industries because these contracts have extended delivery periods
- Tenor: Over 2 years
- Useful when deliveries are to developing countries
Interest rate risk insurance
- Available to financial institutions covered under the medium- or long-term buyer’s credit insurance
- Indemnifies financial institutions for losses and redeems returns resulting from fluctuating interest rates
- Tenor: Over 2 year
- Applies to CIRR rate lending
- K-SURE pays financial institution the difference in interest rates when CIRR is lower than the floating Rate
- K-SURE is paid by the financial institution when CIRR is greater than the floating rate on the difference
Overseas business credit insurance
- Designed to help Korean companies and financial institutions participate in overseas business activities more actively, it indemnifies the policyholders (lenders for overseas businesses) for principal and interest
- Eligibility:
- Borrowers can be foreign companies, financial institutions, and governments with a Korean company (or an overseas subsidiary of a Korean company) taking part in the project as equity investors, operations and maintenance contractors, feedstock suppliers, off-takers, etc. - Tenor: Over 2 years up to a maximum tenor (on a case-by-case basis)
- Cover:
- Up to 100%
- Comprehensive risk (political and commercial) - Insured amount: Principal and interest
Overseas natural resources development fund insurance
- Available for overseas resource development to secure strategic resources in a stable manner—this is necessary because Korea is a resource poor, though highly developed country
- Cover: Commercial and political risk for both exploratory and development and production stages of a project
Overseas construction works insurance
- Covers losses by contractors of overseas construction projects arising from political risks and project owners’ commercial risks
- The policyholders may pay insurance premiums in installments commensurate with their construction works on a milestone basis
- Insured risks depend on the duration of risks based on:
- Shipment
- Insurance of certificate of performance
- Payment by construction project owner - Cover:
- Construction and technology services: Political and commercial risk coverage
- Construction equipment: Political risks only (e.g., expropriation, wars, and money transfer)
Overseas investment insurance (investment financing)
- Covers financial institutions that extend financing to Korean developers of overseas projects in the areas of natural resources, property, mergers and acquisitions, etc., that normally require a large-scale, long-term financing
Cover:
- Commercial risks: Bankruptcy of the main stakeholder of overseas developers, bankruptcy of domestic developers, and defaults
- Political risks: Wars, expropriation, failure to execute agreements and irresistible risks, money transfer risks, and force majeure
Service export credit insurance
- Covers nonpayment of service charges following delivery of the services to foreign buyers
- Eligibility: The following sectors and services are eligible for the cover
- Tour operators
- Transportation (losses in service charges)
- System integration, including hardware, software, system networks, and IT personnel for the construction and maintenance of information system
- Technical services
- Medical services
- Engineering, including losses in expenditures and royalties
- Education
- Content defined as online and mobile games, movies, character-related business, animations, and broadcasting
Other products
- Medium- and long-term export credit insurance: Covers exporters’ losses when export becomes impossible or when exporters cannot receive export proceeds from importers after concluding export contracts with settlement periods exceeding 2 years
- Export bond insurance
- Covers losses suffered by financial institutions in case exporters default on redeeming their bank guarantees issued by financial institutions for export transactions
- Covered events: Fair and unfair calling - Foreign exchange risk insurance (Forward)
- Hedges currency fluctuation risk for exporters
- Targets Korean SMEs with weak foreign exchange capabilities
- Insures against losses or benefit gains from foreign exchange fluctuations for accounts receivable - Product liability insurance
- Insures against faulty or damaged parts, components, or materials produced by Korean companies after the delivery has been made to a third party
- Targets Korean SMEs to boost competitiveness
- Cover: Product guarantee, product liability, and product recall - Importer credit search service
- Overseas debt collection service
Modality | Tenor | Cover type | coverage |
---|---|---|---|
Insurance | Short/medium/long-term | Comprehensive | 100% |
Insurance | Short/medium/long-term | Political | 100% |
Guarantee | Medium/long-term | Comprehensive | 100% |
Performance highlights
What's new?
- K-SURE signed an MOU with Korea Eximbank in order to share overseas projects’ related data from the initial stages of Korean companies’ project bidding
- K-SURE opened a representative office in Chengdu, China
- Posts environmental reviews of projects for public disclosure and comment
- Established K-SURE Principles of Business Integrity
- Utilizes customer satisfaction capability building program to achieve better customer service
- Adheres to corporate social responsibility guidelines, including ethics