Minister of Industry Urges Companies to 'U-Turn' with Expanded Export Support from Logistics to Trade Finance and Online Marketing

Sung Yoon-mo "Companies should use the 'K-Quarantine' brand to promote investment, job creation, and supply chain restructuring such as encouraging reshoring"

Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy held a 'Vietnam Special Entry Business Meeting' on the morning of the 29th at 7 a.m. in the Baekhap Room of the VIP Lounge at Incheon International Airport Terminal 2 with 340 businesspeople scheduled to depart for Vietnam special entry. Attendees included Kim Ho-kyung, Team Leader at KEB Hana Bank; Choi Seung-jae, Manager at SK Construction; Nam Il-woo, Assistant Manager at MCNEX; Seo Jae-won, Assistant Manager at KMW; Kim Yang-il, Manager at Donghwa Vietnam; Han Deok-hee, Senior Staff at Open the Table; Kim Young-dae, Manager at TransOn; Lee Ga-yeon, Staff at Intops; and Kang Ho-min, Executive Director at the Korea Chamber of Commerce and Industry. (Photo by Ministry of Trade, Industry and Energy)

[Asia Economy Reporter Moon Chaeseok] Sung Yun-mo, Minister of Trade, Industry and Energy, stated that the government will do its best to expand export support beyond logistics to include trade finance and online marketing.

On the 29th, Minister Sung held a meeting with 340 Vietnamese special-entry businesspeople at Incheon International Airport and observed the special charter flights to Chongqing, China, and Jakarta, Indonesia, while also holding an "Export Situation On-site Inspection Meeting."

Minister Sung said, "The government is taking the export slump caused by the spread of the novel coronavirus disease (COVID-19) very seriously." Our exports have been caught in double-digit negative growth due to global production disruptions, movement restrictions, and a sharp drop in international oil prices caused by the spread of COVID-19.

He added that the air logistics support to Chongqing and Jakarta is a successful case achieved through cooperation among the government, export support agencies, industry associations, and logistics companies. The Ministry of Trade, Industry and Energy, together with the Korea International Trade Association, operates a round-trip charter flight to Chongqing carrying about 30 tons of export and import goods such as semiconductors from 10 export-import companies. CJ Logistics manages transportation to Chongqing. The one-way charter flight to Jakarta is managed by K-Logi, transporting 16 tons of goods including diagnostic kits, air purifiers, textiles, and protective clothing from 8 export companies.

Minister Sung stated, "The government and support agencies will make every effort to ensure that such successful cases spread further not only in export-import logistics but also in trade finance and online marketing," adding, "The government will strengthen on-site export support in response to the possibility of prolonged COVID-19."

First, he declared that financial support, which companies urgently desire, will be qualitatively enhanced. Earlier, on the 8th, at the 4th Emergency Economic Meeting, it was announced that trade insurance and guarantee maturity extensions, discounts on guarantees and insurance premiums, and early cash conversion guarantees for export receivables would be newly established or expanded. The execution status of trade finance will be checked daily to increase companies' policy awareness. Above all, the public sector will launch the world's first "online direct insurance," allowing subscription without submitting separate documents.

In response to the untact economy era, online export support such as sample logistics support, interpretation, and consulting will be strengthened to lead to actual contracts. Export vouchers of up to 100 million KRW per company will be provided, focusing on new export industries such as 5G, IT, services, medical devices, and food. A package of support including market research, certification, promotion, and corporate establishment for related industries will be provided to nurture strong small and medium-sized export companies. Minister Sung said, "No matter how good a product is, it is useless if it does not reach consumers."

Logistics support will also be strengthened. Information on global export-import logistics such as cargo planes, trucks, and shipping, targeting 100,000 people daily, will be expanded to prevent export disruptions in advance. For air transport, the expansion of tariff exemption items, 50% support for increased air freight costs, and continuous promotion of additional cargo routes using cargo planes and idle passenger planes will be pursued. Support for the purchase of corporate bonds of small shipping companies, mergers and acquisitions (M&A) among national shipping companies, and additional liquidity support for ship financing will be increased to actively support the normalization of maritime logistics. The joint public-private "Emergency Logistics Task Force," operating since February, will be expanded to the "Export-Import Logistics Task Force" to more quickly resolve difficulties in air, maritime, inland transport, customs clearance, and storage related to export-import logistics.

Minister Sung assessed that despite the global trend of factories shutting down due to the COVID-19 pandemic, Korea has succeeded in quarantine and is being recognized as a safe production and supply base. He noted that global credit rating agencies are positively evaluating Korea's credit rating and outlook. Minister Sung emphasized, "Although we are experiencing difficulties amid unprecedented shocks, once demand recovers after COVID-19, our exports and economy will leap forward even more."

He also mentioned that the previous day marked the 475th anniversary of Admiral Yi Sun-sin's birth, saying, "It is time to embrace the spirit of 'If you are determined to die, you will live; if you try to live, you will die.'" He urged, "Using the elevated national brand through 'K-Quarantine,' I ask companies to make bold efforts in proactive investment, job creation, and promoting reshoring and supply chain restructuring." He added, "The government will spare no support in all possible areas including taxation, finance, research and development (R&D), manpower, and deregulation."

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