Best Trade Insurance
Four trade insurance products, which Korea Trade Insurance Corporation (K-sure) has offered to local companies, were selected as the Deal of the Year 2014 by Trade Finance, a magazine concentrating on the international trade finance market, which is published by global publication Euromoney of the U.K.
The four assistance outcome projects include a gas chemical plant project in Turkmenistan, the next-generation LTE network construction of Sprint of the U.S., the establishment of Kia Motors’ local plant in Mexico, and the development of iron mine in Roy Hill, Australia.
Among them, the gas chemical plant project in Turkmenistan, led by a consortium of Hyundai E&C, Hyundai Engineering and LG International, is the first case that top seven local commercial banks give co-financing through trade insurance assistance worth US$1.1 billion (1.23 trillion won).
With the support of K-sure, domestic banking institutions played leading roles in overseas project financing, including six banks giving loans of more than US$100 million (112.25 billion won) each. It seems that the decisive assistance of K-sure paved the way for overseas expansion, which can guarantee long-term and stable returns.
Also, in the next-generation LTE network construction of Sprint, one of the top three communication service providers in the U.S., Samsung Electronics’ local small and medium-sized cooperative companies provided 82 percent of the local procurements of base station equipment at the standard of the number of companies.
Kia Motors is establishing a complete vehicle manufacturing plant with an annual production capacity of 300,000 units in Monterrey, Mexico. This project has also helped the company to strengthen its position as a major global company through the construction of bridgeheads overseas.
In the development of an iron mine in Roy Hill, Australia, Samsung C&T is leading the project, which is worth US$12 billion (13.47 trillion won).
Kim Young-hak, president of the Korea Trade Insurance Corporation, said, “As overseas projects have become bigger and more diversified, we have confirmed the importance of K-sure’s role in the international financial market.”