Case 35: KNT CO Uses K-SURE for Unpaid Receivables
KNT CO is a Korean SME exporting industrial components. In a payment-default dispute with a Bangladeshi buyer, the company recovered its receivables by relying on K-SURE, the Korea Trade Insurance Corporation's export credit insurance scheme. While Case 12 involving Will Garments centered on KOTRA mediation, this case shows a stronger model of receivable recovery built on a formal risk-mitigation mechanism arranged before the transaction.
Background of the Dispute
| Item | Details |
|---|---|
| Korean company | KNT CO (industrial pump parts, based in Gyeonggi Province) |
| Buyer | Bangladesh Industrial Parts Ltd. (Dhaka) |
| Products traded | Industrial pump components (impellers, casings, seals) |
| Contract value | $72,000 (two partial shipments) |
| Payment terms | D/A 90 days (documents against acceptance) |
| Shipment completed | June to July 2025 |
| Payment due | September to October 2025 |
| Cause of non-payment | Buyer liquidity stress plus sharp exchange-rate volatility |
| K-SURE enrollment | Short-term export insurance secured before the transaction |
How the K-SURE Claim Was Processed
Export Insurance vs. KOTRA Mediation
Case 35 is a clear demonstration of how K-SURE export insurance can protect Korean exporters from payment risk in Bangladesh. Against an unpaid amount of $72,000, KNT CO secured a confirmed recovery of $64,800, or 90%, with an insurance premium of only $576. Compared with the more uncertain 70% recovery path discussed in Case 12 through trade office mediation, the value of export insurance becomes immediately apparent. For exports to Bangladesh, K-SURE coverage should be considered an operational necessity.