Buyer credit

• Medium- and long-term buyer credit:
  - Covers financial institutions at home or abroad providing buyer credits against nonpayment by importers or importing countries’ financial institutions for a Korean export transaction
  - Cover: Commercial and political risks
  - Tenor: Over 2 years
• Short-term buyer credit:
  - Cover for a financial institution lending directly to an importer or to a local bank that on-lends to the importer (bank-to-bank structure)
  - Amount covered: Principal and interest
  - Premium: Calculated as a function of the product (direct vs. indirect loan) and whether the policyholder subscribes to comprehensive cover
  - Premium payment: At least 60% of annual premium must be paid within 30 days of policy issuance

Supplier credit

• Insures Korean exporters against the risk of nonpayment of accounts receivable from foreign buyers
• Cover: Commercial and political risks
• Short-term:
  - Applies to insuring importers and issuing bank L/Cs
  - Tenor: Up to 2 years
• Medium- and long-term:
  - Focused on the EPC and shipbuilding industries because these contracts have extended delivery periods
  - Tenor: Over 2 years
  - Useful when deliveries are to developing countries  

Interest rate risk insurance

• Available to financial institutions covered under the medium- or long-term buyer’s credit insurance
• Indemnifies financial institutions for losses and redeems returns resulting from fluctuating interest rates
• Tenor: Over 2 year
• Applies to CIRR rate lending
• K-SURE pays financial institution the difference in interest rates when CIRR is lower than the floating Rate
• K-SURE is paid by the financial institution when CIRR is greater than the floating rate on the difference

Overseas business credit insurance

• Designed to help Korean companies and financial institutions participate in overseas business activities more actively, it indemnifies the policyholders (lenders for overseas businesses) for principal and interest
• Eligibility:
  - Borrowers can be foreign companies, financial institutions, and governments with a Korean company (or an overseas subsidiary of a Korean company) taking part in the project as equity investors, operations and maintenance contractors, feedstock suppliers, off-takers, etc.
• Tenor: Over 2 years up to a maximum tenor (on a case-by-case basis)
• Cover:
  - Up to 100%
  - Comprehensive risk (political and commercial)
• Insured amount: Principal and interest

Overseas natural resources development fund insurance

• Available for overseas resource development to secure strategic resources in a stable manner—this is necessary because Korea is a resource poor, though highly developed country
• Cover: Commercial and political risk for both exploratory and development and production stages of a project

Overseas construction works insurance

• Covers losses by contractors of overseas construction projects arising from political risks and project owners’ commercial risks
• The policyholders may pay insurance premiums in installments commensurate with their construction works on a milestone basis
• Insured risks depend on the duration of risks based on:
  - Shipment
  - Insurance of certificate of performance
  - Payment by construction project owner
• Cover:
  - Construction and technology services: Political and commercial risk coverage
  - Construction equipment: Political risks only (e.g., expropriation, wars, and money transfer)

Overseas investment insurance (investment financing)

• Covers financial institutions that extend financing to Korean developers of overseas projects in the areas of natural resources, property, mergers and acquisitions, etc., that normally require a large-scale, long-term financing
  Cover:
  - Commercial risks: Bankruptcy of the main stakeholder of overseas developers, bankruptcy of domestic developers, and defaults
  - Political risks: Wars, expropriation, failure to execute agreements and irresistible risks, money transfer risks, and force majeure

Service export credit insurance 

• Covers nonpayment of service charges following delivery of the services to foreign buyers 
• Eligibility: The following sectors and services are eligible for the cover
  - Tour operators
  - Transportation (losses in service charges)
  - System integration, including hardware, software, system networks, and IT personnel for the construction and maintenance of information system
  - Technical services
  - Medical services
  - Engineering, including losses in expenditures and royalties
  - Education
  - Content defined as online and mobile games, movies, character-related business, animations, and broadcasting

Other products 

• Medium- and long-term export credit insurance: Covers exporters’ losses when export becomes impossible or when exporters cannot receive export proceeds from importers after concluding export contracts with settlement periods exceeding 2 years
• Export bond insurance
  - Covers losses suffered by financial institutions in case exporters default on redeeming their bank guarantees issued by financial institutions for export transactions
  - Covered events: Fair and unfair calling 
• Foreign exchange risk insurance (Forward)
  - Hedges currency fluctuation risk for exporters
  - Targets Korean SMEs with weak foreign exchange capabilities
  - Insures against losses or benefit gains from foreign exchange fluctuations for accounts receivable 
• Product liability insurance
  - Insures against faulty or damaged parts, components, or materials produced by Korean companies after the delivery has been made to a third party
  - Targets Korean SMEs to boost competitiveness
  - Cover: Product guarantee, product liability, and product recall 
• Importer credit search service
• Overseas debt collection service