Ministry of SMEs and Startups Provides Up to 1 Billion KRW Emergency Management Stabilization Funds to Exporting SMEs Affected by Russia-Ukraine Conflict

Emergency Response TF Meeting Held on the Morning of the 7th
Discovering and Facilitating Alternative Buyers... Export Diversification
Operating 60 Damage Reporting Centers... Whole-Government Response

[Asia Economy Reporter Kim Bo-kyung] The government has decided to provide emergency management stabilization funds of up to 1 billion KRW per company to small and medium-sized export companies affected by the Russia-Ukraine situation. Measures such as introducing alternative buyer referrals for export diversification and supporting return logistics costs have also been announced.

The Ministry of SMEs and Startups held the first emergency response task force (TF) meeting chaired by Vice Minister Kang Sung-cheon on the 7th to discuss countermeasures related to Russia's invasion of Ukraine.

At the meeting, a response plan was finalized, consisting of tailored support by damage sectors such as export, finance, and raw materials, and the establishment of an on-site close management system.

First, loans will be provided to export companies through emergency management stabilization funds. The target is 1,800 companies with an export ratio to Russia and Ukraine of 30% or more, with support of up to 1 billion KRW per company. Special guarantees and preferential treatment for export companies will be newly established, and maturity extensions for existing loans and guarantees will also be implemented.

Support will be provided to companies experiencing decreased exports to Russia and Ukraine by discovering and referring alternative buyers, and a policy package for export diversification will be offered. Additionally, return logistics costs and demurrage fees will be included in the export voucher support scope to compensate for losses.

Raw material supply chain monitoring will be conducted for joint government-level responses, and active support will be provided for companies to utilize the delivery price adjustment system when raw material prices rise.

About 1,000 small and medium-sized enterprises highly dependent on exports to Russia and Ukraine will establish an emergency contact network, and dedicated management will be conducted for 316 companies that are 100% dependent.

Vice Minister Kang emphasized, "We plan to thoroughly implement preemptive inspections, surveys, and tailored support for on-site difficulties for the SME sector," adding, "We must put all our efforts into risk management in the SME sector with special vigilance and tension."

The Ministry of SMEs and Startups will fully activate the emergency response TF from today and plans to resolve various difficulties and suggestions collected through the damage reception center by collaborating with this response plan and the government-wide TF.

Earlier, since the 2nd, the Ministry has set up 60 damage reception centers nationwide at local offices, the Korea Federation of SMEs, and regional headquarters of the Korea SMEs and Startups Agency to receive damage reports.

As a result, a total of 44 reports have been received so far. It has been identified that damages are materializing in various fields such as non-receipt of export payments due to the exclusion of Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), reduction in export volumes due to order suspensions from the Russian side, and suspension of raw material shipments in Russia.

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