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Overseas Investment Insurance

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
Risks Covered Description
Risk of Expropriation
  • Foreign government’s deprivation of dividend claim or right to shares of invested company
  • In case business becomes impossible as the invested company’s assets, rights, or interests essential for the business are deprived
Risk of War or Riot
  • In case business cannot be continued due to damage to the invested company as a result of war, revolution, strife, riot, or terrorism
Risk of Non-fulfillment of Agreement
  • In case business of the invested company cannot be continued due to damage caused by non-fulfillment of agreement concluded with the respective foreign government (central/local government, public enterprise, etc.)
Risk of Remittance
  • In case remittance to Korea becomes impossible for two months or longer due to restriction or prohibition of foreign exchange transaction (or remittance) executed abroad
Risk of Default
  • Default of loan by foreign government (central/local government, public enterprise, etc.)
  • Point of Contact :  Project Finance Coordination Department