The Korea Trade Insurance Corporation (K-Sure) has announced its issuance of the first 'Export Supply Chain Reinforcement Guarantee' to TGS Pipe, a small supplier of POSCO. This initiative aims to support the steel export industry, particularly in the face of increasing global trade uncertainties such as tariff barriers, decarbonization, and oversupply issues. The funding for this support comes from a collaboration between POSCO, the Industrial Bank, and K-Sure, with a notable budget of 200 billion won allocated for guarantees to small and medium-sized enterprises (SMEs) in the steel sector.

Under this program, TGS Pipe is set to benefit from a range of financial assistance measures. These include an export financing amounting to 1 billion won, a raised guarantee ratio from 90% to 100%, a cap of 40 million won on guarantee fees per company, as well as preferential loan rates. With these advantages, TGS Pipe plans to leverage the guaranteed export funds for product development and market expansion, demonstrating the proactive approach that small enterprises can adopt in developing new markets abroad, including Japan and the United States.

K-Sure's initiative aligns with broader governmental goals to transform its role from merely providing insurance and guarantees to actively supporting export companies. Minister of Trade, Industry and Energy, Kim Jong-gwan, emphasized the need for K-Sure to innovate and create new forms of finance through collaboration with major corporations and financial institutions. This expands K-Sure's focus to strategic industries, including shipbuilding and K-beauty, with plans to distribute a total of 1 trillion won in preferential financing to SMEs, signifying a robust commitment to bolstering the export ecosystem in South Korea.