On June 10, K-Sure announced that President Jang Young-jin visited Samdong, a mid-sized manufacturing company in Eumseong, to assess challenges faced by overseas subsidiaries and discuss plans for expanding liquidity support.
Samdong, a manufacturer specializing in electrical materials such as copper coils, operates production facilities in key locations in the United States, including Tennessee. With a surge in demand for electrical infrastructure in the U.S., the company secured $20 million in operating capital based on K-Sure's overseas business financing insurance.
Since June of last year, K-Sure has been running a "Special Support Program for Operating Capital of Overseas Subsidiaries," which directly provides funding not only for facility investments but also for operational expenses. This program offers financial support to Korean companies' overseas subsidiaries with repayment terms exceeding two years to address tariff challenges and stabilize global supply chains.
To date, the program has provided a total of $260 million in operating capital to ten domestic companies with subsidiaries in countries like the United States and Vietnam.
In April, in response to a significant increase in funding demands from overseas subsidiaries, K-Sure raised the total support limit from $300 million to $800 million. The program was also revised to favor small and medium-sized enterprises (SMEs) that are entering foreign markets alongside large corporations.
Specifically, subsidiaries with a payment guarantee from their parent company can receive support of up to 30% of their sales, while SMEs that partner with large companies can receive up to 50% of their sales.
Lee I-joo, CEO of Samdong, stated, "Thanks to K-Sure, we were able to respond promptly to the increasing demand for electricity in the U.S. As we anticipate continued growth in the electrical equipment market due to expanded investments in artificial intelligence infrastructure, ongoing financial support will be crucial."
President Jang Young-jin remarked, "Due to international instability, the demand for operating capital among overseas subsidiaries has surged. We will provide comprehensive support to ensure that our companies do not face difficulties in their overseas operations due to a lack of financial assistance."
* This article has been translated by AI.
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