Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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A Study on the Problems and Its Improvement Plans in Operation of Korean Trade Finance System

무역금융제도의 운용상 문제점과 그 개선방안에 관한 연구

  • Chae, Jing-Ik (Division of Economics and Trade, Kongju National University)
  • 채진익 (공주대학교 경제통상학부)
  • Received : 2019.11.15
  • Accepted : 2019.12.16
  • Published : 2019.12.31
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Abstract

Trade finance promotes export performance, and every small- and medium-sized export business has the right to use policy finance. The credit line is also stipulated by relevant laws and regulations. However, trade finance has repeatedly been misused, so these matters can lead to substantial financial loss and damage to the related financial institutions. The lack of expertise of K-SURE and the backwardness of banks represent even bigger problems in the follow-up management. The existing trade finance system should be improved in the following ways from the institutional and legal perspectives. Firstly, follow-up management of beneficiary companies should be reinforced and systematized through examining business tendencies, financial status, and other important factors. There is also a need for advancement of following up management. An effective and streamlined financing system must be established by abolishing the Korea Trade Insurance Corporation. This study presents improvements and their implications by looking into the main issues under the current trade finance system. This study is based on documentary research and practical cases.

Keywords

Acknowledgement

This paper was researched by the research support of Kongju National University's Academic Research Support Project in 2019.

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