Merchants worried about inter-Korean relations in Yiwu Market
Merchants worried about inter-Korean relations in Yiwu Market
Yiwu market dealer Mr. Hu, who has been paying close attention to the inter-Korean relations, heard the news and slap heavily on his thigh and said “my payment settlement will be deferred again. ”
Yiwu market dealers are worrying about products payment. Mr. Hu does gloves business Yiwu International Trade City. South Korean merchant Mr.Jiang has three years’ business relationship with Mr. Hu. By convention, Mr.Jiang comes to purchase in Yiwu Market on each year’ October, and payment will be settled within one month after delivery. However, what makes Mr. Hu depressed is that Mr. Jiang has not settled this year’s payment. “He still owe me 200,000RMB for payment. ” Mr. Hu sighed.
After mid-December, KRW devalued rapidly and for a time 1RMB is convertible for 180.4KRW. The constant tense inter-Korean relation keep affecting the settlement of RMB against KRW. Many dealers has the same frustration like Mr. Hu’s.
South Korean businessmen became “conservative”. It is said that second half year is usually the boom ordering season for South Korean merchants. Procurement focus on Christmas items, knitwear, and household items.
However, because of the sharply devalued KRW, Korean merchants have been very “conservative. ” The main business of Hao Li Craft is fabric products and they have a close business relationship with South Korea and Japan.
Miss Lee, who is responsible for the business, said that South Korean merchants now take a long time in placing orders. “”South Korean businessmen want to postpone the settlement of payment, but we insist on payment on delivery, so recently it’s hard to conclude a business transaction.” Miss Lee believes that the devaluing KRW is to blame.
Credit risk insurance can be used before trade risk happens. What should you do if payment of arrears happens after you receive orders from North and South Korea? “If you worry about payments, you can try export insurance. ”
Bi Shiwei, head of sales department of China Export Credit Insurance Corporation, introduced that according to the comprehensive loss rate reported by insurance clients, this year the loss ration of insurance policy exporting to South Korea increased significantly than last year in Yiwu Market.