Back in January 2008, Daedong Industrial exported 168 units of agricultural tractors to Zimbabwe. The buyer was the Zimbabwean government.
The central bank of Zimbabwe stood surety for the transaction, but the payment was not made due to the lack of foreign exchange reserves and political unrest in the African country. The Korea Trade Insurance Corporation (KTIC) had to pay export insurance to Daedong in December that year. From then on, trade insurance for export to Zimbabwe was limited, owing to the Zimbabwean government’s arrears.
However, the KTIC has put in consistent efforts for five years to collect the debt, and finally succeeded in reclaiming 100% of the principal and interest of US$3.3 million through a Cabinet meeting in November. Under the circumstances, it is expected that trade insurance between the two countries will be reinstated in the near future to revitalize two-way trade transactions.