[2020 National Audit] "Taiwan Implements 5-Day Quarantine... Shortened Entry and Exit Period for Businesspeople"

Rapid Execution of Trade Finance, Shortened Entry-Exit Periods for Businesspeople... Need for 'K-Trade System'
Kim Kyung-man "Establish Simplified Entry-Exit Measures for Countries with High Export-Import Trade Volume"

On the 8th, when the special entry procedures for Korean and Japanese businesspeople were implemented, passengers were seen going through departure procedures for Tokyo Narita, Japan, at Terminal 2 departure hall of Incheon International Airport. Photo by Moon Honam munonam@

[Asia Economy Reporter Moon Chaeseok] In the political sphere, there have been calls to shorten the quarantine period for businesspeople to a minimum of five days, citing Taiwan's example, and to reduce the duration of businesspeople's entry and exit procedures.

On the 22nd, Kim Kyung-man, a member of the Democratic Party of Korea, stated this during the comprehensive audit of the Ministry of Trade, Industry and Energy held by the National Assembly's Industry, Trade, Resources, and Small and Medium Enterprises Committee (Sanjoongwi), emphasizing the need to establish a 'K-Trade System.'

"Exporting SMEs Face Financing Difficulties... Need to Accelerate Supply of Trade Finance"

Manufacturing BIS (Business Survey Index) Financial Conditions Index. (Data provided by Kim Kyung-man, Office of the Democratic Party of Korea)

Kim pointed out that export companies are experiencing severe financial difficulties.

According to the Manufacturing Finance Index prepared by the Korea Federation of SMEs and the Bank of Korea, the index dropped for SMEs (from above 70 last year to 50 this year) and large enterprises (from above 90 to 70-80).

Execution status compared to the 2020 trade finance supply plan. (Data provided by the office of Kim Kyung-man, Democratic Party of Korea)

In particular, export-oriented SMEs are struggling to secure financing. Accordingly, Kim urged that efforts be intensified to supply trade insurance, which had an execution rate of only 67.5% as of the end of last month.

Kim said, "Since July, the situation for large enterprises has improved, but there is no sign of recovery for SMEs," adding, "Rapid execution of trade finance to alleviate SMEs' financial difficulties must be ensured."

"Taiwan Quarantines for 5 Days... Boldly Ease Businesspeople's Entry and Exit"

Survey results on difficulties faced by export-oriented small and medium-sized enterprises during overseas business trips. (Data provided by the office of Kim Kyung-man, Democratic Party of Korea)

Kim also proposed that measures be prepared to relax the restrictions on businesspeople's entry and exit periods. With countries worldwide closing borders due to COVID-19, the Ministry of Trade, Industry and Energy should actively step in to facilitate smooth trade.

According to the Ministry of Foreign Affairs, as of the 22nd of last month, 80 countries have banned entry for Koreans. Even when entry and exit are possible, it can take up to nearly a month, including two weeks abroad and two weeks of domestic quarantine upon arrival, which is problematic.

In a survey conducted last month by the Korea Federation of SMEs, 71% of responding export SMEs cited 'two weeks of domestic self-quarantine upon entry' as their biggest difficulty.

Kim introduced, "In Taiwan, since June, businesspeople from low- and medium-low-risk COVID-19 countries have been allowed entry without delay, and the self-quarantine period has been shortened to 5-7 days."

He emphasized, "It is necessary to consider simplifying entry and exit procedures as much as possible for businesspeople and technical personnel with overseas offices or factories, as well as countries with significant trade relations with Korea, such as Vietnam, and to shorten the self-quarantine period for business travelers entering Korea."

Kim said, "'K-Quarantine' has become the world's standard model; similarly, creating a global standard economic model like 'K-Trade' to unblock the global trade market hindered by COVID-19 will not only revitalize the economy but also elevate the nation's prestige."

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