Kim Bum-seok, Acting Minister of Economy and Finance, presided over the ‘Economic Ministers Meeting and the Industrial Competitiveness Enhancement Ministers Meeting’ held at the Government Complex in Jongno, Seoul on the morning of the 14th.
The government will provide an additional 400 billion won in emergency funds and 4.2 trillion won in special guarantees to support companies affected by tariffs.
On the 14th, the government announced additional support measures for SMEs (small and medium-sized enterprises) responding to U.S. tariffs at the Economic Ministers Meeting and the Industrial Competitiveness Enhancement Ministers Meeting, hosted by the Ministry of Economy and Finance and related agencies.
The Ministry of SMEs and Startups will increase emergency management stabilization funds for domestic SMEs from 250 billion won to 550 billion won, an increase of 300 billion won, to support global trade risk response and management challenges starting this month. A new 100 billion won fund for urgent trade risk response will be established, targeting industries affected by U.S. tariff measures.
Additionally, the Ministry of SMEs and Startups and the Financial Services Commission will collaborate to establish a 4.2 trillion won ‘Crisis Overcoming Special Guarantee.’ This guarantee supports companies that have been directly or indirectly affected by U.S. tariff policies and high-tech firms, with 1.2 trillion won provided by the Korea Technology Finance Corporation and 3 trillion won by the Korea Credit Guarantee Fund.
Customs consulting will also be expanded. The Ministry of SMEs and Startups and the Ministry of Trade, Industry and Energy plan to supply an additional 174.5 billion won in ‘Export Vouchers’ and to newly develop a dedicated tariff service for companies suffering from tariff damage.
Efforts to ease the logistics burden on export companies are also underway. Hanjin’s U.S. B2C (retail) service, ‘Door to Door Overseas Delivery Service,’ will increase its usage fee discount from 10% to 15%, making it about 45% cheaper than the Korea Post EMS international express service. The government plans to negotiate increased discounts with international express companies like DHL from next year.
Domestic and international fulfillment services, including logistics warehouses and logistics services, will receive 8.4 billion won in support this year, with an increase in support limits.
Export market diversification and market development capabilities will be strengthened. 1 trillion won will be additionally supplied for entry into new overseas markets (from 382.5 billion won to 482.5 billion won), and support for overseas exhibitions and consultation meetings will be expanded.
To respond to export regulations, support for obtaining overseas certification will increase by 10 billion won (from 15.3 billion won to 25.3 billion won). For companies taking their first step toward overseas certification, a preliminary review and diagnosis phase will be introduced in the latter half of this year.
The government will also operate a deep tech value-up program and support a 10 billion won value-up fund for follow-up investment matching to promote cooperation between large and small enterprises. The ‘Startup Open Innovation’ centered on large companies will be expanded to medium-sized enterprises and public institutions with new business needs (matching around 130 startups).
Furthermore, the government will expand customs consultation channels comprehensively and manage them through a one-stop customs response support headquarters. Export support organizations for small and medium-sized enterprises will hold joint meetings to establish local control towers. Additionally, to prevent unfair trade practices, the government will take measures to prevent the shifting of delivery costs and provide incentives to excellent companies that foster mutual growth.