The long economic slowdown has increased sales of receivables insurance for small- and medium-sized businesses (SMEs).
The Korea Credit Guarantee Fund announced that 4,245 insurance companies have been selling these products since April, helping SMEs to improve their financial situation and prevent serial bankruptcies caused by client defaults.
The sales of these policies total 644.7 billion won (US$ 554 million), and are expected to reach more than 1 trillion won by the end of this year. Insurance can cover up to 1 billion won and a maximum of 80 per cent of a firm's unpaid receivables.
Source: Joong Ang Daily
