Korea Trade Insurance Backs Samsung C&T Subsidiary
Amid rapid changes in the export environment for domestic companies due to strengthening carbon regulations in Europe, the Korea Trade Insurance Corporation has stepped up to provide customized support to secure cash liquidity for local subsidiaries.The Korea Trade Insurance Corporation announced on
As European carbon regulations tighten, the need for flexible trade support for Korean companies becomes increasingly apparent. In response, the Korea Trade Insurance Corporation announced an innovative trade insurance solution worth 25 million euros, or approximately 40 billion won, for Samsung C&T's German subsidiary on November 13th.
This insurance will be used as collateral by a bank to purchase the German subsidiary's trade receivables. The insurance policy comes with a 'non-recourse condition,' easing the subsidiary's financial burden.
The move comes as European companies increasingly pass on customs clearance and regulatory compliance costs to their suppliers. This shift has led Korean companies to reorganize their sales structures around local subsidiaries, creating a financial challenge in securing working capital, especially for overseas subsidiaries that must directly comply with regulations and manage logistics.
The Korea Trade Insurance Corporation sees this support as a tailored financial service that acknowledges the evolving export environment. An official from the corporation explained that this measure aims to assist companies facing difficulties due to European carbon regulations.
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