The Korea Trade Insurance Corporation (K-SURE) has signed a $200 million financing agreement with global commodities firm Trafigura to support the export expansion of South Korea’s shipping industry. The move introduces a pioneering financial model using time charter agreements to extend mid- to long-term credit, marking the first such initiative by an Export Credit Agency (ECA).

Under the agreement, K-SURE will provide financial backing to cover time charter fees Trafigura pays to Korean shipping firms, aiming to bolster their participation in global freight operations. Trafigura, which charters vessels worldwide, plans to deepen its engagement with Korean shipping companies as part of its expanding global logistics strategy.

The deal is seen as a strategic step to enhance the operational strength and bargaining power of South Korea’s mid-sized maritime firms. It also reflects K-SURE’s efforts to widen the scope of its export credit offerings beyond traditional capital goods into newer domains, including consumer goods and services.

For Trafigura, the transaction marks its first ECA-backed facility with K-SURE and the first of its kind not directly linked to commodity trade volumes. Crédit Agricole Corporate and Investment Bank acted as the coordinating and structuring bank, with Barclays Bank Plc and Oversea-Chinese Banking Corporation Limited also supporting the facility.

K-SURE President Jang Young-jin noted the initiative as a ‘turning point’ for Korea’s shipping competitiveness and said the agency would continue identifying international charterers to drive export growth in services. Andrea Olivi, Global Head of Shipping at Trafigura, emphasized the long-term partnership potential, calling the facility a model for building a more resilient and diversified maritime supply chain.

POLICY & LAW | Kenya Maps Coffee Farms to Meet EUDR Regulations for Exports