Celltrion secures $300 million in export insurance to bolster global expansion

SEOUL, October 01 (AJP) - Celltrion, one of South Korea’s leading biopharmaceutical companies, has obtained $300 million in short-term export insurance from the Korea Trade Insurance Corporation (K-Sure), a move aimed at strengthening its overseas operations and cash flow.

The agreement marks the first time the state-run insurer has extended such support to the overseas branch of a Korean pharmaceutical and biotechnology company, underscoring the government’s efforts to expand the global reach of the country’s bio sector.

The insurance allows banks to purchase export receivables between Celltrion’s headquarters and its international branches, while guaranteeing compensation if payments are delayed or uncollected. By improving lenders’ capital adequacy ratios, the program enables Celltrion to access financing on more favorable terms, easing working capital constraints.

Celltrion has increasingly relied on its overseas branches to tailor sales to local markets, and the company is preparing for significant exports of new treatments in the second half of the year.

The added financial buffer is expected to help sustain research, global production capacity, and international competitiveness.

“We are pleased to offer effective support to the growing pharmaceutical and bio sectors,” said Jang Young-jin, president of K-Sure. “We will continue to ensure our companies can secure working capital under favorable conditions through trade insurance.”

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.