KOTRA Takes Action to Resolve Logistics Crisis... Expands Support for Export-Benefiting Companies

[Asia Economy Reporter Suyeon Woo]# Food manufacturing company A was surprised by the sudden increase in transportation costs after COVID-19. Recently, as demand surged both online and offline in the United States, transportation costs rose, leading the company to consider giving up on exports. To overcome these difficulties, A is currently negotiating with overseas buyers to expand exports by reducing logistics costs with the help of KOTRA's Overseas Joint Logistics Center.

# Semiconductor parts export company B faced a situation where the air freight charges were higher than the unit price of the parts they intended to export due to rapidly rising air transportation fees. Through KOTRA's 'Export Voucher International Transportation Cost Support Service,' B was able to settle international transportation fees and continue exporting, maintaining relationships with customers.

On the 11th, KOTRA announced that it would allocate an emergency budget and expand logistics support services to help small and medium-sized enterprises (SMEs) and mid-sized companies experiencing logistics difficulties. They plan to increase the number of beneficiary companies from the current 514 to 2,268 by establishing an integrated support system covering everything from international transportation to local fulfillment services (which handle delivery, packaging, and inventory management all at once).

KOTRA's representative logistics support projects include the 'Overseas Joint Logistics Center' and the 'Export Voucher (International Transportation Service).' The Overseas Joint Logistics Center project maintains safety stock in local logistics warehouses through over 210 partner logistics companies worldwide and ships immediately upon consumer or buyer orders. KOTRA selected and supports 400 Korean companies earlier this year and plans to recruit up to 1,000 companies in total.

The Export Voucher project grants vouchers to selected companies, allowing them to choose and receive support for services necessary during the export process. Participating companies can settle international transportation costs such as sea and air freight through the logistics companies performing the service using the vouchers. Currently, 114 companies are using the international transportation service, and KOTRA plans to expand this to 518 companies.

Since the 14th of last month, KOTRA has increased the support limit per company for the 'International Transportation Voucher,' which participating companies can use with logistics companies, from 10 million KRW to 20 million KRW to reduce logistics burdens. The number of logistics companies providing the service will also increase from the current 45 to 100.

Additionally, this year, KOTRA plans to temporarily expand logistics-related support in connection with major overseas marketing projects such as overseas exhibitions, the Power Seller development project, and the transformation of domestic companies into export companies. For 300 SMEs and mid-sized companies that achieved exports through participation in overseas exhibitions, international transportation costs will be supported up to 70% within a limit of 5 million KRW.

Online export companies selected for this year's Power Seller development project will receive support for up to 30% of overseas shipping costs, with more than 300 companies expected to benefit from logistics support. Among domestic companies participating in the transformation into export companies, those that succeed in exporting will receive full support for international transportation costs up to 2 million KRW per company.

KOTRA President Jeong-yeol Yoo emphasized, "We will continue to actively promote various logistics support projects to help our companies enter overseas markets."

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