South Korea has an export oriented economy and much of their growth has been achieved through the production of manufactured products. They are the first ever historical recipient of aid from the OECD to become a major donor themselves to the program, a goal they reached in 2009.

Top South Korean exports include integrated circuits ($56.1 billion), refined petroleum ($47.9 billion), cars ($43.5 billion) and passenger and cargo ships ($22.5 billion). Top export destinations for South Korea are China ($142 billion), the United States ($64.1 billion), Japan ($34.6 billion) and Singapore ($24.8 billion).

Chart Showing GDP Growth Compared to rest of world

Export finance is a revolving facility which some banks and specialist lenders offer – it enables firms to buy inventory and can help ease cash flow issues.

Often, a trade financier will fund all of the cost of the product, including charges (e.g. VAT charges).

Trade finance offers advantages over more traditional bank finance such as asset finance or business loans. Trade finance provides quick funding without affecting existing bank relationships.

How does it work?
If you’re a company importing or exporting inventory from or to other countries, then a trade finance facility would allow you to fund this through offering a letter of credit or some form of cash advance.

I’m looking to import from South Korea, how can Trade Finance Global help, and how does it work?
If you are looking to import stock from other markets, you may need import finance, which is an agreement between yourself (the importer) and the foreign exporter. A alternative finance bank will act as the intermediary, paying the foreign exporter on your behalf until you get the inventory and have then sold them to your end debtor. Repaying the financier then occurs over an agreed period of time.