LG Electronics Receives $18 Million Trade Insurance Support for TV Platform Exports
The Korea Trade Insurance Corporation has provided $18 million in trade insurance support for LG Electronics' TV platform service exports. This marks the first instance of insurance covering the risk of recovering payments for online video service (OTT) brands and content advertising services, going beyond just TV hardware exports. The corporation stated that it is offering trade insurance to assist LG Electronics in exporting its TV platform services. The TV platform service generates revenue by advertising OTT brands on the platform screen after the sale of TVs and collecting commissions. The key aspect of this support is the expansion of the export target from products to services. Traditionally, TV exports have focused on finished products, but as platform screens and content advertising have emerged as revenue sources, the scope of export insurance has also expanded to include service transactions. Trade insurance is a financial policy tool designed to mitigate the risks of non-payment and payment delays from overseas clients during the export process. In response to intensified competition in the TV market, LG Electronics is promoting the expansion of its business model through TV platform services, and the insurance support from the corporation helps reduce the risk of not being able to recover service payments from overseas clients. This case represents the first instance of the corporation supporting TV platform service exports, demonstrating that trade insurance can also apply to non-hardware exports for manufacturing-based companies, as service exports carry actual risks of payment recovery.
-- Price
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