OTTAWA—Export Development Canada (EDC) has signed an agreement with its South Korean counterpart to work together on business transactions involving companies from both countries.
According to EDC, representatives from the agency together with the Korea Trade Insurance Corp. (K-sure) signed what it called a “reciprocal re-insurance agreement” that will allow the two sides to support both Canadian and Korean firms on joint export and investment opportunities around the globe.
“Canadian companies have been very clear that they want to do more business in South Korea, and K-sure’s customers have said the same about Canada,” Clive Witter, senior vice-president of insurance with EDC, said in a statement.
“Together, we aim to bring real-world value to the business between Canadian and South Korea companies by making it easier for them to insure and finance deals.”
About 260 Canadian companies used EDC’s services last year to do more than $1.6 billion in business in South Korea.
The deal between EDC and K-sure precedes the implementation of the recently signed Canada-Korea Free Trade Agreement (CKFTA).
Awaiting ratification, the trade agreement between the two nations is expected to boost Canadian exports to South Korea by 32 per cent as firms gain “unprecedented access” to South Korea’s $1.1-trillion economy.
The key sectors where EDC and K-sure expect to see more interest are agriculture, automotive and heavy truck, food and beverage, environmental infrastructure and waste water, mining and metals, and oil and gas.