SEOUL, KOREA –The Small and Medium Business Administration and the Korea Credit Guarantee Fund said on January 9 that they have set the insurance fund for those small businesses unable to collect sales-related debts at 10 trillion won. This is 43 percent higher than last year’s 7 trillion won.
Small business owners can purchase the insurance to prepare for contingencies in which they fail to get paid after they deliver goods to their customers. At 0.1 to 5.0 percent of insurance premium, the companies can receive up to 2 billion won in insurance compensation. Last year, as many as 626 companies took advantage of the scheme, with a total of 74.7 billion won in insurance claims.
The Small and Medium Business Administration said it would raise this year the limit to 3 billion won. Inquiries can be made at any of the eight regional offices and 99 sales offices. For further information, call 1588-6565.
*Article provided by The Korea Economic Daily