Overview of Scheme

This scheme is to compensate for losses caused as a Korean company or financial institute makes an overseas investment, and becomes unable to recover the shares (or equity), dividends, principal and interest, etc., due to the risks of expropriation, war or riot, remittance, non-fulfillment of agreement, default, etc.

• As an overseas investment, unlike a domestic investment, involves national risks, such as the risk of war and expropriation in the invested country, this scheme was introduced to promote active overseas investment by protecting Korean companies making such investments.

Product Structure

Target Transactions and Risks Covered

• Shares : Acquisition of shares or equity of foreign corporation
• Loans : Undertaking of corporate bond of or loan to foreign corporation
• Guaranteed Liabilities : Imposition of guaranteed liabilities for foreign corporation’s corporate bond issuance or borrowings exceeding two years