State-run Korea Trade Insurance Corp. (K-sure) will channel 65 trillion won ($60.8 billion) to support Korean small- and medium-sized enterprises in trade finances over the next five years.

K-sure President Moon Jae-do said in a press conference on Tuesday the export credit agency plans to raise the ceiling for credit to local SMEs annually from this year’s 49 trillion won to 65 trillion won by 2022. It will provide separate comprehensive trade aid programs to traders so that they need not worry about financing or hedging against risks.

“We will focus on helping SMEs narrow the gap with big companies and support their effort to create jobs and combat challenges from trade protectionism,” said Moon.

SMEs entering a new market or business will receive a set of incentives, according to the agency. Trading firms that venture into a risky new market would benefit from a bigger discount of 35 percent in insurance premiums. The current discount rate is 25 percent. Companies going into one of the eight designated sectors, including electric vehicles, robots and bio healthcare, would be also offered preferential insurance coverage.

The agency will also help local SMEs build networks with global plant construction companies and provide trade insurances for infrastructure projects in the Middle East, Asia and Eastern Europe.

K-sure said it will launch various programs in support of the government’s job creation campaign. A program to be released next month involves assisting suppliers of raw materials and component exports to help them with their capital turnover. Another program, which started in January, guarantees up to 500 billion won and offers a discount of up to 50 percent on guarantee fees for companies that show a strong record of job growth.

By Ko Jae-man and Kim Hyo-jin

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