- Device Financing for Bell Canada’s Purchase of Samsung Electronics’ Telecommunications Equipment, which is Expected to Bolster Competitiveness in the North American Market.

- Financing Offered to Major Overseas Telecom Operators on Condition of Purchasing Korean-made Equipment, Driving the Global Competitiveness of Korean Exporters.

■ The Korea Trade Insurance Corporation (hereinafter referred to as “K-SURE”) announced on the 14th (Monday) that it will provide $700 million (approximately KRW 1 trillion) in financial support for the telecommunication device purchase project of Bell Canada (hereinafer referred to as “Bell”)

○ Bell which holds the No. 1 market share in Canadian telecom sector with approximately 22 million subscribers, will utilize the entirety of these funds secured through K-SURE to purchase telecommunication devices from Samsung Electronics.

○ Through this financing support which is conditioned on Bell’s purchase of Korean-made telecommunications equipment, K-SURE aims to help expand the market share of Korean companies in Canada and enhance their local competitiveness.

■ Amid intensifying competition among global smartphone producers, K-SURE has continuously offered purchase financing to leading overseas telecom operators to support the overseas expansion and market-share growth of Korean telecommunication firms.

○ In 2022, K-SURE provided U$ 1 billion in purchase financing for major U.S. carriers’ procurement of Korean-made 4G/5G network equipment, thereby reinforcing the position of Korean companies in the North American market.

○ In Europe, K-SURE also offered €100 million and €350 million in financing to major telecom operators in Poland and France in 2021 and 2023, respectively.

■ Through these efforts, K-SURE has been actively expanding its Device Financing program to major operators worldwide on the  condition that they purchase products from Korean companies, thereby actively supporting Korean exporters in bolstering their competitiveness in global telecommunications markets.

○ In response to the recent slowdown in exports due to rising protectionism, K-SURE is strengthening its financial support across a broader range of sectors, including consumer goods, moving beyond the traditional focus on capital goods when providing medium-and long-term export financing.

■ Beyond device financing, K-SURE also provides pre-financing to major overseas plant owners on the premise that Korean firms secure the project orders. Starting this year, the scope of eligible project owners for such pre-financing has been expanded from public-sector clients to include creditworthy private-sector buyers, thereby further increasing contract opportunities for Korean exporters. 

○ In addition, K-SURE enhances the role of its overseas branches in seeking and winning overseas projects to provide tailored support for Korean companies. As part of such effort, K-SURE established its Washington D.C office in April this year, to monitor U.S. trade polices and political and economic trends, enabling a more agile response to changes in the global environment. 

■ Chairman and President of K-SURE, Jang Young-jin, stated, “As seen in the case of financial support for the Canadian telecom operator, providing financing to overseas contractors on the condition of purchasing Korean products is regarded as an effective means of promoting exports. ”

○ “Moving forward, we will continue to actively support our export companies in exploring overseas markets and strengthening their global competitiveness by identifying importers interested in purchasing Korean products and offering them financing.“