Gyeonggi Province eases eligibility criteria and increases funding for exchange rate risk insurance

◇ K-sure Foreign Exchange Rate Risk Management Support Center, a foreign exchange rate risk management website operated by the Korea Trade Insurance Corporation ‘. ⓒ Gyeonggi G-News

Gyeonggi Province plans to be more actively engaged in overcoming a low Japanese yen risk and helping small and medium enterprises in Gyeonggi Province enter the Japanese market. In particular, the province will look into the possibility of increasing the funded amount for the foreign exchange risk insurance of small and medium exporting enterprises while pursuing the expansion of small and medium enterprises possessing excellent technology into Japan.

According to Gyeonggi Province on June 24, the provincial government is expected to ease the eligibility criteria for foreign exchange rate risk insurance recipients from a minimum of USD 5 million in previous year exports to under USD 20 million. Funding for insurance will increase 100% to KRW 2 million per company. These measures are geared to secure the export competitiveness of small and medium enterprises relative to Japan and to ensure safe exports.

In addition, the province will offer foreign exchange rate risk education for small and medium exporting enterprises, and induce businesses into purchasing foreign exchange rate risk insurance by awarding additional points to companies with a previous history of foreign exchange rate risk management if they participate in overseas marketing support projects implemented by the provincial government.

An official of the Gyeonggi Provincial Government noted, “The exchange rate with the Japanese yen has fallen to KRW 800/JPY, which is the lowest since August 2008, and this has exacerbated the export environment for our small and medium enterprises exporting to Japan.” The official explained, “The Korea Trade Insurance Corporation has launched its K-sure Foreign Exchange Rate Risk Management Support Center’ (www.ksure.or.kr) website service. Small and medium exporting enterprises should give it a look since they will be able to obtain information on foreign exchange rate risk easily.”

The Gyeonggi Provincial Government is in the process of implementing its ‘Expansion of Specialized Enterprises into the Japanese Market Project’. The project selects five small and medium enterprises in Gyeonggi Province that possess cutting-edge and innovative technology and actively supports their entry to the Japanese market.

The Expansion of Specialized Enterprises into the Japanese Market Project operated jointly by Gyeonggi Province and the Korea Techno-Venture Foundation (a subsidiary of the Korea Advanced Institute for Science and Technology); it helps small and medium enterprises in Gyeonggi Province enter the Japanese market. Among 55 candidates, five companies including Rollpack and Shinwoo Electric Manufacturing were selected on June 8.

The five selected businesses will receive Korean-Japanese interpretation/translation support through the Korea Techno-Venture Foundation’s Tokyo office. These corporations will also receive help in finding and negotiating with Japanese buyers via their designated technical marketing coordinator by business line. 

Gyeonggi Province International Trade Division Manager Kim Neung-sik said, “We hope this offers some practical help for small and medium exporting enterprises facing difficulties with regards to foreign exchange rate risk management.” Kim continued, “The Japanese domestic market is recovering and Japanese consumers are spending a little more thanks to the low yen. We will take this crisis and think of it as an opportunity and offer active support for businesses exporting to Japan.”

ⓒ Gyeonggi G-News | Kim Jin-kyoung jinkyoungkim@kg21.net 

http://gnews.gg.go.kr/news/news_detail.asp?number=201506241310097055C052&s_code=C052