Posco International, the trading and energy arm of Posco Group, announced Wednesday that it has become the first-ever issuer of "Global Sales Insurance No. 1" in Korea, recognized for its extensive global network and performance across 80 countries.

Launched in November 2023 by the Korea Trade Insurance Corporation, or K-Sure, this financial security allows foreign subsidiaries to secure working capital before collecting payments, while helping banks reduce provisions for bad debts by classifying these assets as non-risky.

The delivery ceremony was held at K-sure, which provided insurance securities to facilitate smooth financing. Deutsche Bank Korea will support the process by purchasing receivables and expediting liquidity for participating firms.

With Posco International’s Singapore branch as the first recipient, the company expects reduced financial risks, lower corporate debt burdens and enhanced financial stability in global trade operations.

"Favorable interest rates will allow our subsidiaries to secure working capital more efficiently and improve profitability ratios," Posco International CEO Lee Kye-in said during the delivery ceremony.

Jang Young-jin, president of K-sure, also emphasized the significance of this tripartite partnership, saying, "This initiative marks a milestone in trade financial assistance. We will continue to support domestic firms, ensuring they maintain a competitive edge in securing funds within the global financial landscape."

By Park Soo-bin (spark@heraldcorp.com)