Government Backing Ensures Korea Trade Insurance’s Solvency

Moody’s Ratings has determined that Korea Trade Insurance Corporation (K-SURE) enjoys a stable outlook. This is largely due to its close connection with the South Korean government. Under Article 36 of the Trade Insurance Act, the government is legally bound to ensure K-SURE’s solvency. Such a legal obligation serves as a significant safeguard for the insurer.

The stable outlook reflects Moody’s anticipation that K-SURE’s policy role and the robust government support it receives will remain unchanged in the next 12 to 18 months. Given the crucial position of trade in South Korea’s economy, K-SURE’s function in facilitating and safeguarding trade is of great significance. Moreover, the government’s full ownership and control over K-SURE, along with its mission to bolster Korean trade and overseas investments, enhance its strategic value even further.

What’s more, Moody’s considers government support to be nearly certain. This is because K-SURE has been designated as a public institution and is under the operational oversight of key ministries like the Ministry of Economy and Finance and the Ministry of Trade, Industry, and Energy. These factors combined make K-SURE a well-supported entity in the trade insurance realm within South Korea.

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