Kentucky Exporting Company exports products to several countries in Asia. Which of the following payment methods is likely to have the most risk for Kentucky Exporting: Prepayment, letter of credit, sight draft, or open account? Explain why the payment method you chose would likely be the riskiest for Kentucky Exporting Company.

Kentucky Exporting Company from the previous question made a shipment to the East Asia Importing Company. The payment was arranged using a letter of credit arranged by South Korean National Bank, and Kentucky Exporting documented that it shipped the goods on a ship that left from California. East Asia Importing Company claims it cannot make the payment because corruption and mismanagement by the former CEO pushed the company into bankruptcy. Who, if anyone, is responsible for making the payment to Kentucky Exporting Company?