The Korea Trade Insurance Corporation (K-sure) said the reinsurance deal reached with Nippon Export and Investment Insurance (NEXI) opened new horizons for helping companies secure more contracts and facilitating financing arrangements.
Under the agreement signed in Seoul earlier in the day, K-sure and NEXI will coordinate with each other to provide insurance coverage if South Korean and Japanese companies jointly win a deal in a third country.
"For example, if a South Korean company secured a contract to build an industrial plant in Africa that included Japanese components subcontractors, K-sure would provide coverage for the entire project, but NEXI would engage in a reinsurance arrangement for Japanese companies," K-sure said.
In the past, all such deals were handled on a case-by-case basis that took more time. Delays could act as a burden for companies, since a trade insurance policy could make it easier to win financing support and other benefits ahead of operations.
K-sure said the latest arrangement can diffuse risks related to trade-related insurance coverage for both sides. For the latest updates PRESS CTR + D or visit Stock Market news Today
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