• International Commerce and Information Review
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• v.10 no.4
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• pp.513-532
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• 2008

The purpose of this study was to analyze which factors have had impacts on extension export insurance charge of Korean export insurance. In order to attainment of this study, an empirical study was proceeded. The export insurance charge was hired as the dependent variable and export insurance premium, insurance compensation charge, export insurance collection charge and export insurance fund were used as independent variables. Data was used for estimation are the annually data from 1969 to 2007. From results of this analysis, we find the hired variables have highly correlation among them and the most influential factor turns out to be export insurance fund. Main results of this study was as follows : i) The export insurance fund must be increased immediately. ii) It is necessary that Korea Export Insurance Corporation give their attention to the compensate amount of export insurance compensation on specific insurance item. iii) It is necessary that Korea Export Insurance Corporation extension the collection efforts of the export insurance. iv) A reasonable raising of export insurance premium need to be done.

• International Commerce and Information Review
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• v.8 no.1
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• pp.259-281
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• 2006

In this study, I analysed the Direction of Progress for the Korean Export Insurance upon Export Support for Its Small-Middle Company, investigated Korean Export Insurance focussing on the Export Support for Its Small-Middle Company since Korea Export Insurance Coporation(KEIC)'s establishment and sought for the measures overcoming problems therewith. In my research I started from a basic model analyzing the Korean Export Insurance for Its Small-Middle Company using added several variables that have effect on such export relative price, world income and the amount of the Korean Export Insurance for Its Small-Middle Company. As a result, amount of the Korean Export Insurance for Its Small-Middle Company, world income and export relative price showed expected responses and were significant. Also world income showed expected responses but was not significant. In case of amount of the Korean Export Insurance for Its Small-Middle Company was statistical significance.

• International Commerce and Information Review
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• v.10 no.4
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• pp.553-577
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• 2008

Various export supporting systems of Korean government have affected Korean economy to be 13th in the world and over US$ seven hundred trillion in terms of the volume. Especially, export insurance system use to cover the commercial risks of Korean exporter. That is why Korean exporter have been able to do their best in exporting and expand overseas market actively. On the other hand, China who use to drive strong export expansion policy after joining WTO, have also very focused on export insurance system and developed its applicable items. From the point of view above, It is very meaningful study to compare the export insurance system between Korea and China. It is suggested that government funds for export insurance should be raised to give exporters more benefits. New kinds of export insurance items, also, should be developed to actively face international trade environment change.

• International Commerce and Information Review
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• v.10 no.1
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• pp.259-277
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• 2008

This paper empirically analyzes the influence of export insurance on export promotion using panel data for the Korean case during the sample period from 2003 to 2006. We use the Korean export's share in trading partners' imports as a weight for the weighted least square (WLS) estimation to measure the effect of export insurance on the export promotion. Our main finding is that export insurance subsidy seems to enhance the export performance when the Korean export takes greater share in other countries' markets. On the other hand, under weaker monopoly power of the Korean export, export risk and trading partners' GDP growth rate has more influence on the export promotion rather than export insurance subsidy. Our finding implies that policy makers and practitioners should discern the Korean exports' monopoly power differential across trading countries for better performing export insuarnce policy.

• International Commerce and Information Review
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• v.6 no.2
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• pp.65-84
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• 2004

Korean Government has provided special support to Korean export industry during past 40 years. However, due to the agreement on UR and appearance of WTO, the Government can't provide most of the subsidies which were allowed before WTO era. Hence, export insurance system became more useful tool since it's one of the few allowed subsidies under WTO. This study tries to find the impacts of export insurance systems on the exports in Korea, the United States, and Japan. Firstly, this study surveyed the export insurance systems of Korea, the United States, and Japan. Then, using a regression analysis it analysed the effects of export insurance systems upon the exports in Korea, the United States, and Japan respectively. The period of data is from 1980 to 1999. The results of the regression analysis for export insurance showed significant and positive effects of both Korean and Japanese but the United States showed insignificant and positive upon the exports.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.69
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• pp.427-451
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• 2016

With WTO system starting since 1995, the international trade business has been getting more competitive and fairer especially with the agreement on subsidies and countervailing measures. The export credit insurance, as the only institution of supporting export business under WTO system, is getting more significant in major economies as an indirect means to support export business. In China, SINOSURE has been monopolizing its export credit insurance market for a long time. Since January 2013, however, the Chinese government permitted several commercial insurers to compete in the market and they include PICC, PING AN, CPIC, China Re. This study is to discuss how to improve the Chinese export credit insurance after analyzing performance of privatization of short-term credit insurance and real cases of success and failures. With the 'Go Global' and 'One Belt, One Road' policy of Chinese government, the role of export credit insurance is expected to be more significant. Thanks to the Korea-China FTA since December 2015, international trade between the two countries will be greater especially in finance and insurance area. Because Korean insurance industry is very much interested in getting into Chinese export credit insurance market, they need to study carefully the performance of privatization of Chinese short-term export credit insurance. For their policy decision makings the Korean authorities need to get lessons from the privatization of Chinese short-term export credit insurance business.

• Journal of Korea Trade
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• v.24 no.6
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• pp.157-172
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• 2020

Purpose - This research empirically proves the extent to which export insurance promotes Korean exports to research object countries among New Southern countries. The outcome of this research will present implications for the operations of export insurance for exports to these countries. Design/methodology - For the empirical analysis, the export equation was composed using a basic gravity model. Based on this, the determinants of Korea's exports to research object countries were analyzed. In this study, a panel unit root test and panel cointegration test were conducted. As a result of the panel unit root test, it was confirmed that the variables of the panel data are not belonging to I(0), but to I(1). As a result of the panel cointegration test, it was established that there are long-term stable relationships among all variables. Accordingly, the gravity model was estimated using original data in order to reduce the information loss caused by the first difference, in spite of individual data belonging to I(1). Findings - For the estimated results of panel OLS, the estimated coefficient of short-term export insurance was 0.56-0.64, with statistically significant results at the significance level of 1%. In addition, for the analysis results of the random effect model, the estimated coefficient of short-term export insurance was 0.59-0.64%, with a statistically significant result at the 1% significance level. This could indicate that Korean export insurance has positive influences on export promotion to New Southern countries. Originality/value - The research implies that export insurance has a 4.1 to 4.7 multiplier effect in expanding exports to the New Southern countries for Korea. This research has intensively analyzed the effects of export insurance on the promotion of exports to a selected area by a government foreign economic policy, which is the originality and value of this paper.

• International Commerce and Information Review
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• v.13 no.3
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• pp.377-401
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• 2011

Under the WTO system, direct export support system that provides financial and tax related support is altogether prohibited. This presented an obstacle in strengthening competitiveness of Korean export business and in increasing exports continuously. One of the methods used to solve this problem was to actively leverage export insurance. In Korea, export insurance services have been conducted by the Korea Trade Insurance Corporation (k-sure) to promote export. Korea has been among the world's active users of the export insurance system. Given this situation, this paper examines the effectiveness of the Korea export insurance system in the promotion of export. In particular, this study analyzed about discriminating effects of the export insurance on the export of big and small-medium business. In order to analyze, We introduce a Export Supply Function model. In this paper, We construct two model. The one is about big business, the other is small-medium business. For empirical analysis, unit-root test was conducted to understand the safety of time series. The results show that all variables are not I(0) time series. Instead, they are I(1) time series. To this, cointegration verification was conducted based on the use of Johansen verification method to define the existence (or non-existence) of long-term balance relationship among variables. The results come out as follows. The export insurance of big business has a stronger effect on export than that of small-medium business. The cause of these results is due to the distinct structure of Korea industries. In view of the fact that the insurance can make the risk decreased. We can say that the export insurance affects the export of a high-risk country.

• International Commerce and Information Review
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• v.15 no.4
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• pp.367-387
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• 2013

19) This research investigates the satisfaction level of both countries' export companies about the export insurance system which can cause problems in Korean-Chinese FTA in this age of spreading FTA. Through this research, it surveys of the system user satisfaction of two nations based on the characteristics of export insurance systems in South Korea and China. The satisfaction level of export credit insurance system is as follows: Awareness of credibility (3.53), awareness of exporting area (3.38), awareness of risk management (3.29), awareness of market change (3.14), awareness of insured accident (3.24), and awareness of regulations (3.03) present positive responses to the export insurance system but awareness of defective product (2.97) was relatively unsatisfied. Though it is hard to compare directly due to the differences between the exporting systems of Korean and China, this research shows the need of various export insurance products, and that most export companies in Korea and China are generally satisfying with export insurance products at present.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.39
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• pp.59-85
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• 2008

An independent bank guarantee(aka an independent guarantee) is provided as an security on a principal obligor's performance of his obligation, and a guarantor should pay the guaranteed amount only upon a beneficiary's written demand. A standby letter of credit has been used in the United States, since it was construed that a bank should not issue a guarantee. There was wide misunderstanding that a standby letter of credit differs from an independent bank guarantee. However, a standby letter of credit is the same security as an independent bank guarantee, and in international business a standby letter of credit is not differentiated from a independent bank guarantee. An independent bank guarantee are independent from the underlying contract, unconditional, and irrevocable. And a guarantor should pay upon written demand without proving a principal obligor breaches the underlying contract. These features of an independent bank guarantee has been abused in international transactions. Thus it has been proposed that some exceptions to the features of an independent bank guarantee should be allowed. United Nations Convention on Independent Guarantees and Standby Letter of Credit(1995) stipulates some exceptions to payment obligation. Export bond insurance, a part of export insurances, operated by the Korea Export Insurance Corporation under the Export Insurance Act, is used as a security for unfair calling by a beneficiary under an independent bank guarantee. Most of the export subsides by the government are prohibited under WTO's Agreement on Subsidies and Countervailing Measures. However, as export insurance is allowed under the WTO, it operates a significant role in enhancing the export. In the event that export bond insurance is provided for a guarantor, an obligor who is subject to recourse by a guarantor, can be exempt from the recourse in case of unfair calling. The Korea Export Insurance Corporation, an insurer, bears unfair calling risk by a beneficiary. Generally it is understood that a demand shall be made before the expiry of an independent bank guarantee. However this is not absolutely true, it shall be decided by URDG, ISP98, the governing law.