The Korean government introduced Export Credit Guarantee (‘ECG’) and Export Credit Insurance (‘ECI’) programs to support national exports. A typical ECG and ECI not only covers the risks of non-payment by importers, but also enables export financing for an exporter. Although, these programs provide various benefits, they can however be misused by fraudulent exporters. Such fraud not only contravenes the intended purpose of the programs, but also harms honest exporters by increasing insurance premiums.
Global Trade and Customs Journal