Korea Trade Insurance Corporation (K-Sure) has launched an emergency task force and support measures to help limit export disruptions as tensions involving Iran and the wider Middle East escalate.
The state-backed trade insurer on 11 March said president Jang Young-jin would directly oversee the task force, while three executive vice-presidents would lead workstreams focused on damage support, risk monitoring, and policy and research.
K-Sure said the task force would coordinate assistance for companies exporting to seven countries near the Strait of Hormuz — Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain, Iraq, and Iran — as well as Israel, alongside firms involved in projects across the Middle East.
Support measures include real-time monitoring of reported losses and operational difficulties, emergency funding assistance, and coordination with government policy responses. K-Sure also said it would expand trade finance limits and tenors to help affected companies manage liquidity, while speeding up compensation for insured losses.
To support the diversification of export counterparties, the agency said it would provide overseas credit investigation services free of charge and offer tailored consulting for individual companies. It added that liquidity support could include preferential credit guarantee limits of up to 1.5 times and extensions without reductions when guarantee maturities fall due.
“Given the possibility that the situation may be prolonged, we have prepared emergency support measures focused on liquidity support and diversifying export trading partners,” Jang said, adding that K-Sure would “work closely with the Ministry of Trade, Industry, and Energy and other relevant agencies to keep pace with the government’s proactive response aimed at minimising export damage.”
K-Sure’s measures come as South Korean authorities step up their broader response to the Middle East conflict. Earlier this month, the Financial Services Commission said it would launch a 24-hour joint task force to monitor financial market risks in real time and coordinate responses across agencies.
K-Sure’s move also preceded the Financial Supervisory Service (FSS)’s 12 March emergency meeting with 14 (re)insurers to urge them to strengthen their risk management and their review marine reinsurance protections amid the escalating Middle East tensions.
