Seoul: Global B2B e-commerce platform Alibaba.com announced the introduction of its Trade Assurance service in South Korea, aiming to support local small and medium-sized enterprises (SMEs) in broadening their export activities with enhanced safety and transparency.
According to Yonhap News Agency, Trade Assurance is a proprietary transaction protection service by Alibaba.com that offers a secure trading environment for both sellers and buyers. It encompasses transaction protection, settlements, and deliveries to ensure smooth cross-border trade experiences.
The service utilizes an escrow-based payment system, which involves holding funds by a third party and releasing them only upon the successful completion of a transaction. This process helps to mitigate uncertainties such as payment defaults, which are common in international trade.
Shawn Yang, general manager of global business development at Alibaba.com, stated that "the biggest barrier in trade is a lack of trust." He highlighted that the risks associated with global transactions often deter SMEs from exploring international markets. Alibaba.com aims to provide this "practical safeguard" to assist Korean SMEs in expanding their overseas business ventures.