Exporting SMEs' Biggest Concern 'Logistics Costs'... SME Ombudsman "Proposes Expansion of Support Budget"

Park Joobong, SME Ombudsman, "Actively Consult with Relevant Ministries on Export Companies' Difficulties"

Jubong Park, Small and Medium Business Ombudsman (Vice Minister level).
[Photo by Small and Medium Business Ombudsman]

[Asia Economy Reporter Kim Jong-hwa] Park Ju-bong, Small and Medium Business Ombudsman (vice ministerial level), stated on the 9th, "We will convey the voices from the field to ensure that the budget can be expanded next year to support export companies struggling due to the logistics crisis."

Ombudsman Park made this remark at the '4th Overseas Expansion Companies Regulation and Difficulties Meeting' for the Daegu-Gyeongbuk region, held jointly with KOTRA, and promised, "We will cooperate with related ministries to prepare effective measures."

This meeting was organized to listen to the regulations and difficulties faced by small and medium enterprises struggling with exports due to COVID-19. Following visits to Busan, Daejeon, and Jeonju, Daegu was the fifth region visited this year. Attendees included Lee Byung-heon, Secretary for Small and Medium Ventures at the Presidential Secretariat, Kim Han-sik, Head of the Daegu-Gyeongbuk Regional Small and Medium Venture Business Administration, the Head of the Daegu-Gyeongbuk Regional Headquarters of the Korea International Trade Association, and the Director of the KOTRA Daegu-Gyeongbuk Support Group.

Small and medium enterprises cited the sharp rise in logistics and transportation costs as the biggest difficulty this year. Amid the ongoing logistics crisis triggered by COVID-19, companies repeatedly expressed concerns about the significant increase in burdens such as transportation and warehouse storage fees.

Company M, which exports automobile parts, said, "Exports were halted this year due to the rapid increase in logistics costs, and the outlook remains pessimistic." Fashion apparel and accessory sales company S, preparing to enter overseas markets, lamented, "We frequently send product samples to overseas buyers, but since COVID-19, overseas shipping costs have increased so much that it is difficult to actively discover new buyers."

In response, Ombudsman Park introduced, "The Ministry of SMEs and Startups and the Ministry of Trade, Industry and Energy established the 'Logistics-Dedicated Export Voucher Project' this year to support export companies struggling with the logistics crisis," and added, "We will convey the voices from the field to ensure budget expansion and support next year as well."

Ombudsman Park also introduced KOTRA's 'Sample Test Marketing' project, which partially supports the cost of sending samples to overseas buyers, explaining that companies can receive up to 3 million KRW in support.

Additionally, participants raised issues such as △support for difficulties related to the export of processed forest products, △relaxation of usage limits for each export voucher service, △expansion of financial support for micro and small enterprises, △need for wage support to alleviate labor shortages in non-capital regions, and △expansion of opportunities to participate in branch office projects.

Ombudsman Park said, "Listening to the difficulties of small and medium enterprises and creating what is needed is the responsibility and duty of the Ombudsman," and added, "We will cooperate with related ministries to prepare effective measures."

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