Behind the expansion of Korean companies into the United States — in semiconductors, shipbuilding, batteries and K-beauty — stands the Korea Trade Insurance Corporation. The agency guarantees Korean exporters' contract performance in its traditional role, while also taking on newer functions such as financing purchases by U.S. buyers and investment in local production facilities.
The scale of that support is growing. Total exports backed by the agency's insurance and guarantees rose to $188.5 billion last year from $173.5 billion in 2024, and the target for this year is $200 billion.
Shipbuilding is the clearest example in the U.S. market. The agency provided $300 million in vessel purchase financing to an American shipping company, helping K Shipbuilding win the order. Rather than lending only to Korean shipyards, the approach finances overseas buyers and links that money to demand for Korean-built ships. Support for refund guarantees (RG) for smaller shipyards is also expanding, to a target of 750 billion won this year from 142.1 billion won last year. Jang Young-jin, chief executive of the agency, said commercial banks find it difficult to move aggressively in this area because of the risk involved.
The scope has widened to companies that produce and sell directly in the United States. The agency provided $1.5 billion for the U.S. electric-vehicle battery joint venture between Hyundai Motor and SK On, and supplied $50 million in working capital for local operations at Cosmax's U.S. unit. Its support for U.S. projects rose to 7 trillion won last year from 5 trillion won in 2024, with a target of 8 trillion won this year.
In step with expanding local production, the agency is preparing financial support for overseas supply chains. It plans to introduce a program next year that extends its domestic supply-chain guarantees abroad, financing Korean companies operating overseas and their local suppliers.
Support is also increasing for exporters that struggle to raise money from private lenders. Special guarantees for advanced small and mid-sized technology firms grew to 210 billion won last year from 7.3 billion won in 2024, and reached 257.9 billion won as of August this year. The main targets are companies with growth potential that cannot clear commercial banks' thresholds because of their financial results or credit standing.
The agency said many companies win export contracts but then struggle to fulfill them for lack of funds. One materials, parts and equipment maker cited by Jang had posted losses for three straight years when it signed a 700 billion won export contract with a large Chinese company, but was at risk of failing to deliver because it could not secure guarantees and working capital.
The agency provided both, allowing the contract to go ahead. "The following year the company's revenue rose to 500 billion won from 100 billion won, overtaking a Japanese rival to become No. 1 in its field," Jang said on the 17th. "Supporting funding for exporters that private finance finds hard to serve is exactly the role of a state policy lender."
