Yoon Ja-young is in charge of articles translated by a generative AI system and edited by The Korea Times. She is interested in improving the newspaper through AI.
'Korea needs more trade financing experts'
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By Yoon Ja-young
As a manufacturing powerhouse that relies on exports, Korea needs experts in trade financing. Otherwise, mistakes and errors could occur during complicated procedures, incurring unnecessary costs.
The Certificate for Documentary Credit Specialists (CDCS), which verifies one’s expertise in trade financing, is thus gaining a spotlight. Many global banks require document reviewers to hold CDCS certification, which proves a comprehensive understanding of the products, parties, processes and rules that underpin documentary credit transactions.
Jointly developed by the International Chamber of Commerce and the London Institute of Banking and Finance, CDCS was introduced in Korea by Kim Sang-kyung, president of the Korea Institute of International Finance. It marks its 25th anniversary here this year. Those wishing to get the certificate can take courses at the institute and apply for the CDCS.
“The Asian financial crisis made Koreans realize that even banks can falter. The best preparation against such a crisis that can repeat at any time is to invest in education of employees, just as manufacturing companies invest in R&D. I decided that nurturing trade financing experts is essential for Korea to become a developed country,” Kim told The Korea Times.
Currently acknowledged in some 120 countries around the world, the certificate has been bestowed on more than 30,000 professionals so far. Nearly 12,000 people hold this certification in China, while there are over 3,500 in India. Korea has over 2,600 professionals with this certificate, most of whom work in major banks.
“Global trade has become complicated. It became challenging to verify trading partners, prices and the nature of goods, as well as keeping updated on changing trade rules and sanctions. Consequently, a thorough document review became essential for banks when signing international trade documents,” Kim said.
People used to learn from their more experienced colleagues in the past, but this was only a temporary solution. “Banks prefer employees who can demonstrate the appropriate level of competence, particularly when significant money and the bank's reputation are at stake,” she stressed.
It isn’t easy to get the certificate — only about 60 percent of those who apply for the certificate succeed.
“But the certificate is definitely worth the hard work,” Kim said.