Alibaba.com launches Trade Assurance service in Korea

Global B2B e-commerce platform Alibaba.com said Monday it has launched its Trade Assurance service in Korea to help local small- and medium-sized enterprises (SMEs) expand exports more safely and transparently.

Trade Assurance is Alibaba.com's proprietary transaction protection service, designed to provide a secure trading environment for both sellers and buyers by covering transaction protection, settlements and deliveries.

It employs an escrow-based payment system, where funds are held by a third party and released only after the transaction is completed, in order to minimize uncertainties such as payment defaults during cross-border transactions.

"The biggest barrier in trade is a lack of trust. In particular, risks involving global transactions often make SMEs less willing to venture into global markets," said Shawn Yang, general manager of global business development at Alibaba.com.

Alibaba.com said it plans to provide this "practical safeguard" to help Korean SMEs in expanding their overseas business.

Yonhap