Urgent Proposal to Support the Martial Arts and Trade Industries Affected by COVID-19

[Asia Economy Reporter Hwang Yoon-joo] The Korea International Trade Association (KITA) announced on the 19th that it has submitted an urgent support measures proposal for the trade industry to the government to overcome the damage caused by COVID-19.

Since February, KITA has been receiving export companies' difficulties caused by the spread of COVID-19 through the Export Difficulties Resolution Support Center, and since the 7th, it has held meetings with 13 industry groups including semiconductors, displays, and bio sectors to draft the urgent support measures proposal for the trade industry.

In the proposal, KITA urged cooperation with foreign governments regarding measures such as deploying charter flights for small and medium-sized enterprises' overseas business activities and allowing entry of businesspeople holding infection-free certificates in response to entry restrictions imposed by countries worldwide. For disruptions in air transport caused by cancellations and reductions of passenger flights, it requested priority delivery of urgent trade documents via international postal service (EMS) at post offices and leading international public discussions through the World Trade Organization (WTO).

KITA also proposed support for dispute consulting and commercial arbitration costs so that Korean companies can receive rightful compensation for unilateral order cancellations by overseas buyers, development of financial products to compensate for damages caused by payment delays, and designation of the clothing and textile industries as special employment support sectors.

The proposal also included support measures for major affected industries such as temporary reduction of traffic inducement charges and local taxes for the exhibition and convention industry, extension of the temporary reduction period for individual consumption tax on automobiles and temporary reduction of acquisition tax, application of emergency tariff quotas on crude oil imports, and restraint on increases in industrial electricity rates.

Additionally, the proposal included temporary suspension of labor regulations such as the 52-hour workweek system and expansion of flexible work systems, relaxation of regulations under the Chemical Substances Control Act and the Chemical Control Act with fast-track application, easing of selection criteria and provision of incentives for companies returning to Korea, and establishment of export systems for quarantine and food security-related industries expected to see global demand expansion after COVID-19.

KITA Policy Cooperation Director Kwon Do-gyeom stated, "As COVID-19 spreads worldwide, the trade industry is facing great difficulties due to restrictions on personnel and cargo movement, a sharp decline in global demand leading to reduced new orders, and even cancellations of existing orders," adding, "It is urgent to expand financial, tax, and market support for export companies, ease labor and environmental burdens, and provide proactive support to expand exports after COVID-19."

This content was produced with the assistance of AI translation services.