Korea Trade Insurance Corporation (K-sure) issued 570 billion won in Refund Guarantees (RG) to domestic shipbuilders in the first half, exceeding four times the full-year 2024 total of 142.1 billion won. The surge reflects active financial support to enable domestic shipbuilders to fully utilize production capacity amid an unprecedented boom in the shipbuilding industry. K-sure has expanded RG issuance from local banks to commercial banks and recently broadened support into defense, steel, K-content, and K-beauty sectors.
K-sure RG Issuance Reaches 570 Billion Won in First Half
According to data compiled by Yonhap Infomax, K-sure's cumulative RG issuance to domestic shipbuilders reached 570 billion won as of June. This first-half figure alone is more than four times the full-year 2024 amount of 142.1 billion won. K-sure issued 71.7 billion won in RG in 2023 and 326.4 billion won in 2024. Issuance briefly slowed in 2025 but surged again this year as the shipbuilding industry entered a full-scale super cycle.
RG is a guarantee in which a financial institution agrees to refund advance payments to shipowners if a shipyard fails to deliver vessels as contracted. It is a core element for stable ship orders, particularly enabling small and mid-size shipyards to secure export opportunities. K-sure has supported approximately 1 trillion won in RG issuance through special support programs since the system's inception, strengthening the order base. The corporation also significantly expanded the range of participating RG issuance institutions from local banks to commercial banks.
K-sure Issues 70 Billion Won RG to Small Shipbuilder and Supports HD Hyundai Suppliers
Last month, K-sure provided special support to a domestic small shipbuilder facing difficulties in securing orders due to insufficient RG capacity. The corporation issued 70 billion won in RG to the shipyard, which had signed a new order contract but risked losing the work.
K-sure also recently issued the first 'Export Supply Chain Strengthening Guarantee' certificate for the shipbuilding industry to suppliers of HD Hyundai Heavy Industries. This initiative aims to stabilize the management of small and mid-size suppliers facing financing difficulties and promote balanced growth between large and small enterprises through comprehensive support.
K-sure Extends Financial Support to Defense, Steel, K-Content, and K-Beauty Industries
K-sure has expanded its export support beyond shipbuilding to defense, steel, K-content, and K-beauty. The corporation established a dedicated team for the defense industry last year and provided liquidity support in April this year to help small defense companies enter global markets.
In February, K-sure issued Export Supply Chain Strengthening Guarantee certificates to small suppliers of POSCO and provided 354 billion won in preferential guarantees. This month, the corporation decided to provide $100 million in working capital to CJ ENM's US subsidiary and $25 million in financial support to Kolmar's US subsidiary, contributing to the global expansion of K-content and K-beauty industries.
A K-sure official stated, "It is significant that medium- to long-term financial support centered on traditional heavy industries such as plant construction has expanded to soft power industries such as content and beauty. We will continue to spare no effort in supporting our companies to secure competitiveness in the global market."
FAQ
Q1: What is the total RG amount K-sure issued to shipbuilders in the first half?
A1: K-sure issued 570 billion won in Refund Guarantees to domestic shipbuilders in the first half, exceeding four times the full-year 2024 total of 142.1 billion won.
Q2: Which industries has K-sure expanded financial support to beyond shipbuilding?
A2: K-sure has extended support to defense, steel, K-content, and K-beauty industries. Recent actions include issuing guarantees to POSCO suppliers in February, providing working capital to CJ ENM's US subsidiary, and offering financial support to Kolmar's US subsidiary this month.
