Buyers don't want to send T/T advance payments to unfamiliar Korean makers. Makers don't want to ship before being paid. L/C costs 1.5–3% and takes weeks. ERGSN sits in the middle — at 1% — and releases funds only after the bill of lading is confirmed.
First-time cross-border T/T requires a 50% advance to a Korean account the buyer has never wired to. Procurement teams at hospitals, government agencies, and mid-cap enterprises routinely kill promising Korean deals at this gate because internal risk policy blocks unsecured advances above $10K.
L/C is the classical fallback — but it's expensive, slow (2–4 weeks to issue), and requires both banks to accept the documentary structure. For first-time pairings with mid-sized Korean makers, the paperwork alone exceeds the margin.
Korean SMEs producing high-quality specialised goods (HIPAA shredders, HYGEN generators, HFF supplements, 3D content) often lose export deals because buyers won't advance T/T to unverified Korean accounts. Makers cannot produce on pure credit either — production costs are real.
ERGSN absorbs this exact gap. Our 13-year trade history, Korean bank relationships, and existing buyer trust mean the escrow account we operate is accepted by procurement departments where a maker's own account would not be.
1
ERGSN issues the Proforma Invoice on behalf of the verified maker. Fee and escrow terms appear on the PI.
2
Buyer sends the 50% T/T advance to the ERGSN escrow account. Both parties receive confirmation.
3
ERGSN confirms advance to the maker; production begins. Maker is not paid yet.
4
Goods ship. Ocean B/L is issued. Maker uploads B/L + inspection certificate to ERGSN.
5
ERGSN verifies B/L with the shipping line. Advance funds release to maker minus the 1% fee. Balance T/T continues on standard terms.
| Service | Who pays | Fee |
|---|---|---|
| Escrow of 50% T/T advance · standard case | Deducted from maker release | 1.0% |
| Full-invoice escrow (100% held until delivery) | Deducted from maker release | 1.3% |
| Multi-tranche trades · 3+ shipments | Deducted per tranche | 0.8% / tranche |
| Exclusive Partners (Tier 4) | Bundled in 2% commission | Included |
| Dispute mediation (if triggered) | Assessed by case | From $500 flat |
Comparison: a standard import L/C costs 1.5–3% of invoice, takes 2–4 weeks to issue, and requires document review by both banks. ERGSN Escrow at 1% issues in 48 hours against an existing verified-maker PI, with ERGSN’s trade history absorbing the counterparty-unknown risk that would otherwise block the deal.
ERGSN CO., LTD. receives escrow funds through a designated Korean bank account segregated from operating capital. The PI and Escrow Agreement (generated per trade) reference the escrow hold explicitly. Release triggers are the confirmed ocean B/L and, when applicable, the inspection certificate — both are independently verifiable with the shipping line and inspection agency.
Primary escrow account: KEB Hana Bank. Secondary: Shinhan Bank. Trade confirmation wires settle through standard SWIFT in USD / EUR / JPY. Pilot trades are limited to these two corridors.
ERGSN mediates first. If the dispute concerns quantity or specification, the inspection certificate and B/L are the evidence of record. If a quality dispute arises at the port of arrival, ERGSN can hold the release pending independent third-party inspection; the prevailing party's position is reflected in the release decision, and mediation fees follow the case-assessed rate above.
We cannot escrow trades for (1) products requiring end-use licence approval the buyer does not yet hold, (2) dual-use goods to embargoed destinations, or (3) first-time pairings above $500K during pilot phase. Post-pilot (Q1 2027+) limits are lifted upon completion of operating track record.
Three differences: (1) ERGSN verifies every maker with our 4-step audit before eligibility; (2) the escrow operates in Korean banking with KRW intermediary conversion when preferred — relevant for mid-cap Korean makers whose capital structure is KRW-denominated; (3) ERGSN's 13-year trade history provides a trade-reference backstop the buyer's procurement team can cite in risk-committee submissions.
10 pilot slots total. We're selecting pairings where both sides have clear documentation and a trade size between $20K and $500K. Fill the form below and the ERGSN trade desk replies within one business day.