Activating International Factoring Payment in Korea

• 영문명: Activating International Factoring Payment in Korea
• 발행기관: 한국무역연구원
• 저자명: Seo-Young Lee
• 간행물 정보: 『무역연구』제10권 제2호, 43~64쪽, 전체 21쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2014.04.30

영문 초록

In most recent times, the use of the letter of credit or L/C method has been lessened considerably while the later remittance method, including an open account, has been growing in popularity as the preferred method of payment in international trade. For exporters, a change in payment methods increases the risk of collecting export payments which can hinder overall export trade. In order to prevent such credit risk which the exporter can bear, using the international factoring method can be a positive solution. When the exporter uses international factoring, the exporter can obtain cash from the factor through trade finance and avoid credit risk even if the post payment type which includes open account is employed. Even though the effectiveness of international factoring has been proven in other countries, Korea s usage of international factoring is very low compared to Europe, US and other major Asian countries. Given these circumstances, this paper examines the conditions and limitations of Korea s international factoring system with regards to its the legislation and management. Moreover, it also proposes the following action plan for promoting the use of international factoring despite its limitations. First, regulations and systems for international factoring must be organized. Second, there should be more finance companies providing international factoring service. Third, the commission for factoring must be reduced. Fourth, a policy to support small companies must be found. Finally, the training of specialists for a vibrant international factoring business is necessary and must be prioritized.

목차

Abstract

Ⅰ. Introduction

Ⅱ. Theoretical Consideration behind International Factoring Payment

Ⅲ. Domestic and International Market Conditions for International Factoring Payment

Ⅳ. Limitations of International Factoring

Ⅴ. Conclusion

References

키워드

International Factoring Trade Payment Limitation of International Factoring Export Factoring