Korea Trade Insurance Corporation, the first case supporting small and medium-sized military industry enterprises to enter the global market

The Korea Trade Insurance Corporation has begun to ease the export funding burden for small and medium-sized defense industry companies like Dasan Tech, marking the first case of directly supporting small and medium-sized defense enterprises in expanding overseas markets.

On April 26, 2026, the Korea Trade Insurance Corporation announced that to help Dasan Tech enter the global market, it would provide liquidity support. The support involves, in the case of bank guarantees required by overseas importers during export contracts, the Trade Insurance Corporation assuming the risk of loss for those guarantees. At the export site, it is common for the other party to request a guarantee to confirm performance capability, but for small and medium-sized enterprises, this process itself constitutes a financial burden.

After this system was launched, companies can reduce the funds frozen as collateral when obtaining bank guarantees. In short, operational funds occupied by banks to secure contracts can be redirected to production, delivery, and subsequent export preparations. For small and medium-sized defense companies with limited financial strength, this can be seen as a mechanism that not only increases the likelihood of securing export contracts but also enhances actual business execution capabilities.

The significance of this case lies in the fact that it is the first time the Trade Insurance Corporation has directly supported export transactions of small and medium-sized defense enterprises since establishing a dedicated team last year to cultivate the defense industry. Historically, K-defense has mainly focused on large enterprises and major weapon systems, but there has been ongoing criticism that the industry base needs to be expanded by strengthening the overseas presence of small and medium-sized enterprises that supply components and finished products. The support from the Trade Insurance Corporation is interpreted as an attempt to address this issue from a financial perspective.

Trade Insurance Corporation President Jang Young-jin explained that this support is a direct effort to promote the export of defense products by small and medium-sized enterprises, aiming for balanced development of K-defense. Compared to general manufacturing, defense exports involve longer contract cycles and more complex structures for guarantees, credit, and payment recovery, making public financial support especially important. This trend may also extend to other small and medium-sized defense enterprises in the future and could serve as an opportunity for the domestic defense ecosystem to shift from being centered on a few large companies to a broader export base.