State export insurer to increase coverage to 170 tln won next year

SEOUL, Dec. 17 (Yonhap) -- South Korea's state export insurer said Wednesday that
it will increase the size of its coverage support to 170 trillion won (US$128
billion) in 2009 to help companies ship more products overseas.
The increase is a sharp gain from the 130 trillion won provided by the Korea
Export Insurance Corp. this year and is timed to meet deteriorating economic
conditions that could seriously hamper exports.
Export insurance is critical for many companies since it helps cover possible
losses related to overseas trade. Small- and medium sized enterprises (SMEs) are
to be the main beneficiaries of the increase in funds along with companies that
trade with developing countries in Central Asia, Latin America and Africa.
Coverage will also be increased for the shipbuilding, construction and industrial
plant sectors from $12.5 billion to $20.0 billion. The three industries are
expected to help export growth in the new year since the country enjoys global
competitiveness in those areas.
The state-run company added that it will increase credit guarantees to 9 trillion
won next year from 1.5 trillion won earmarked for 2008 which can ease the
liquidity crunch felt by many exporters.
The South Korean government said last month that it is aiming to push up exports
to US$500 billion in 2009, although most think tanks claimed $450-470 billion may
be more likely in the face of the worldwide economic downturn.
Think tanks also said a slight trade surplus is expected in 2009 from a deficit
that could exceed $13 billion this year.
yonngong@yna.co.kr
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