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  • SGI provides guarantee service to both individuals and corporations. Products are mainly classified as surety bonds and credit insurance. By issuing surety bonds and credit insurance policies for a wide variety of business transactions, we aim to create value to the client and support their economic activities.

    The company`s main surety bond products are Contract Bonds, which provide guarantees to companies that need credit support or improved financial security in order to enter into a contract. Contract Bonds help them enhance their creditworthiness for due performance of the contract.

    We also provide products that guarantee a principal`s fulfillment of legal obligations (such as taxation bonds, court bonds and permit bonds) or that indemnify the employer for an employee`s fraudulent or dishonest actions (fidelity bonds).

    The main products for credit insurance is Commercial Credit Insurance, which covers sellers` loss incurred from the buyers` non-payment of account receivables from various types of trade.

    As of 2014, SGI provides a total of 72 products composed of 54 surety bonds, 15 credit insurance products and 3 others. By having customer satisfaction at the top of our values, we will continue to provide support with a broad range of products and services tailored to the customers` needs.

  • Contract Bonds

    Contract Bonds are commonly required facilities in the most types of contracts and agreements. SGI provides guarantees to companies who need credit support or a better security to enter into a contract. Below is a small sampling of the types of Contract Bonds that are available.
    Bid Bond
    A Bid Bond covers the loss occurring when the successful bidder does not enter into the contract, or if there are reasons for the bidder to withdraw the bid during the period of bid validity specified in the bidding documents. The bond commences on the day before the bidding date, and the expiry date shall be more than 30 days after the bidding date. The bond amount shall be 5% or a certain percentage of the bid amount.
    Performance Bond
    A Performance Bond protects the project owner from the loss occurring when the contractor has not fully performed his duty as to the contract. The bond commences on the date of the contract and expires on the date performance is completed as prescribed in the written contract. The bond amount shall be 10% or a certain percentage of the relevant contract as referred to thereon.
    Maintenance Bond
    Maintenance Bonds are guarantees that oblige contractors to perform maintenance or do corrective work during a specified guarantee period. The bond commences on the date the inspection is done after the completion of the work or supply, and expires on the date the maintenance period is finished. The bond amount shall be 5~10% or a certain percentage of the relevant contract as referred to thereon.
    Advance Payment Bond
    Advance Payment Bond covers the loss occurring in case the Principal fails to repay the advance payment or pay for or return the advanced materials when the Principal fails to perform the obligation(s) stipulated in the contract. The bond commences on the date the advance payment is made, and expires on the date the performance is completed. In the case that a homestead period is stated in the relevant law or main contract, the expiry date will be extended to the end of the homestead period. The bond amount shall be 5~10% or a certain percentage of the relevant contract as referred to thereon.
    Counter Guarantee Bond (Indirect Guarantee)
    When concluding an overseas project, many companies are requested to provide a guarantee issued by a financial institution. SGI`s Counter Guarantee Bond can be used as collateral for the issuance of guarantee, in case the contractor needs to furnish the guarantee issued by a financial institution operating in the employer`s country, or the contractor does not have enough credit limits to apply for a guarantee. In case the employer makes a call to the financial institution that issued the guarantee on behalf of the contractor, SGI will pay the amount of the employer`s call and relevant expenses and costs to the financial institution. The counter guarantee, as a product that co-exists with a guarantee, enhances the contractor`s creditworthiness. Also, SGI`s high credit rating has gained substantial trust from numerous financial institutions.
    Please contact our offices for more information on our Contract Bonds. click here
  • Non-Contract Bonds

    Non-contract bonds are basically designed to indemnify a default or non-fulfillment of an individual or a firm where his promised duty is legally or customarily required. Below is a small sampling of the types of Non-Contract Bonds that are available.
    Fidelity Bond
    A Fidelity Bond indemnifies the employer for the losses from employee’s fraudulent and dishonest acts. SGI has been the exclusive provider of fidelity bonds and has assisted job applicants to find new occupations. The bond reimburses financial losses to the Beneficiary (employer) when the Principal (employee) abused his job position to commit a crime designated as a major crime under the Criminal Act (larceny, robbery, fraud, embezzlement, and misappropriation) during the insurance period.
    Judicial (Court) Bond
    The Court Bond covers the loss that the Principal should compensate to the Obligee when the Obligee receives a title of debt relating to the right of claim for damages due to the case as stipulated in the bond. As to court bond, there is no set bond period. The obligations stated under the bond shall commence and be in effect until the deposit made to a Justice Office has been released. The bond amount shall be the sum that an applicant for civil case has to provide as a security in accordance with court order.
    Taxation Bond
    A Taxation Bond is a bond used to protect the National Government/Local Government against due taxes that are not received. It covers financial losses to the beneficiary (tax authority) when the Principal fails to pay his tax duties or customs. The main examples are Deferred Payment (ex: National Tax, Customs, etc.) and Re-export Customs Exemption. In the case of guarantees for national tax or local tax, to calculate the bond period, 30 days must be added to the original period required by the tax office or city. For guarantees for National tax or local tax, the bond amount shall be more than 110% of the amount required by the tax office or city, whereas for Guarantees for Customs, the bond amount shall be more than the amount required by the customs office.
    License & Permit Bond
    License & Permit Bonds cover the loss caused by the failure of the Principal to perform the conditions which grant a special privilege, a restricted business, or other right for a special facility or act, regardless of the name of the license, permit, patent, approval, registration, or other designations to the Obligee and/or 3rd parties of property. If an article stipulating an extension period exists in the relevant law, it shall be added to the License & Permit Period. The bond amount shall be the sum which the principal has deposited to the Obligee.
    Please contact our offices for more information on our Non-Contract Bonds. click here
  • Financial Guarantee

    SGI offers some financial guarantees for individuals and corporations but owing to the unique risk and feature of the products, personal financial guarantees such as Employee`s Loan Bond constitutes most of the portfolio.
    Employee’s Loan Bond
    Employee’s Loan Bond covers the loss incurred to a beneficiary (employer or bank) when its employee failed to repay the loan that the beneficiary had approved for mortgage payment or other use to promote the welfare of the employees. An agreement is necessary between the beneficiary and SGI and the underwriting terms and premium rate for each beneficiary could be adjusted according to its accumulated loss ratio for 5 years of this product.
    Please contact our offices for more information on our Financial Guarantee. click here
  • Credit Insurance

    In general, Credit Insurance provides coverage for non-payment by a buyer for goods or services he purchased. It indemnifies the unpaid account receivables of the seller in various purchase agreements. Below is a small sampling of the types of Credit Insurance that are available.
    Commercial Credit Insurance
    Commercial Credit Insurance guarantees the payment of the Obligor for the credit sales and services. SGI offers credit insurance for mobile phone contracts (providing coverage for service charges and installment payments for mobile phones) and credit sales in domestic and/or international trade. To provide seamless service to both domestic and multinational companies, the global credit insurers such as Euler Hermes, Coface, Atradius etc. are in cooperation with SGI in reinsurance.
    Mortgage Credit Insurance
    In the late 1990s, Korea’s financial regulators strengthened their rules governing the mortgage loan market, such as increasing the loan-to-value ratio and enhancing its debt-to-income (DTI) regulations. Mortgage Credit Insurance (MCI) insures the “small rental key money” portion of a loan provided for a mortgage up to LTV 70% by a financial institution. MCI guarantees the loss a financial institution may incur from issuing the additional loan (MCI portion) in the event the debtor fails to perform its obligations according to the loan contract.
    Please contact our offices for more information on our Credit Insurance. click here

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