Overseas Natural Resources Development Fund Insurance - K-sure

This product is designed to partially indemnify losses to
overseas investors due to political risks (war, limits on the
repatriation of currency, etc) and commercial risks (bankruptcy
of entities receiving investment, price fluctuations in given
resources, etc.).

A stable supply of resources is vital for the resource poor Korea
that depends on imported energy resources for economic development and overseas resource development is a must for the
country. However, certain risks are inherent to resource development in foreign countries, which usually involve long-term and
large-scale investments.

This product contributes to the national economy of Korea by helping the country to secure strategic resources in a stable
manner.

Types of Overseas Natural Resources Development Fund Insurance and Losses Covered table

Product Types	Transactions Covered	Losses Covered
Loans, etc	- Loans extended to foreign enterprises developing overseas resources for korea - Acquisition of loans and private loans extended to borrowers developing overseas resources for korea	- Non-recovery losses of principal and interest including loans
Stocks, etc	- Investment in joint stock companies of overseas local subsidiaries and foreign enterprises - Investment for management participation of foreign resources development companies	- Non-recovery losses of investment principal including stocks
Beneficial Interests, etc	- Acquisition of beneficial interests of contract counterparties in revenue transactions	- Non-recovery losses of investment principal including beneficial interests

Transaction Structure for Buyer Credit

In case the resources development company (SPC) is the policyholder

Exploratory Business: Political Risks + Commercial Risks (Business Risks)

- Business Risks (Exploration failures): When the insured investment counterparty did not identify business feasibility or failed in the business, the counterparty or the policyholder’s suspending or abandoning of the exploratory business for the whole mining areas stipulated on the contract

Development and Production Business: Political Risks + Commercial Risks (Business Risks)

- Business Risks: When losses of investment principals occur upon maturity of the investment period due to fluctuation of mineral prices and the production volume