"FTA, 40% of Small and Medium Enterprises Fail to Utilize... Active Response Needed from Related Agencies"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Last year, only 6 out of 10 small and medium-sized enterprises (SMEs) and mid-sized companies engaged in exports utilized Free Trade Agreements (FTAs).

According to data submitted by the Ministry of Trade, Industry and Energy to Lee Sung-man, a member of the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises and Startups Committee from the Democratic Party of Korea on the 5th, the FTA export utilization rate of SMEs and mid-sized companies last year was only 60.3%.

In other words, about 40% of exporting SMEs and mid-sized companies are practically not utilizing FTAs. This figure has actually declined compared to 65% in 2015. On the other hand, the FTA export utilization rate of large companies increased from 78.3% in 2015 to 85% last year.

Looking at the country-specific export utilization rates of SMEs and mid-sized companies, the order was ▲EU (77.5%) ▲Canada (71.1%) ▲Turkey (69.5%) ▲United States (68.9%) ▲EFTA (68%) ▲Chile (62.4%) ▲India (60.8%) ▲Australia (58.4%) ▲China (51.3%) ▲New Zealand (42.9%) ▲ASEAN (41.6%) ▲Peru (39.8%) ▲Colombia (23%).

Assemblyman Lee Sung-man said, "To enjoy the benefits of FTAs, companies must start by directly issuing certificates of origin and verifying customs clearance procedures one by one to meet the necessary requirements," adding, "The reality is that SMEs face difficulties in this process due to a lack of specialized personnel and information."

He emphasized, "Recently, there have been cases where exporting companies struggled to prepare supporting documents due to a surge in origin verification requests from Turkish customs authorities," and added, "The Korea Customs Service, Small and Medium Business Corporation, and FTA Trade Support Center should actively respond to manage risks in advance."

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