Government Strengthens Response to Ukraine Crisis... 200 Billion Won Emergency Support for Export Companies

Ministry of Trade, Industry and Energy Holds 'Export-Import Logistics Emergency Response TF'
Supports Domestic Return Shipping Costs through Export Voucher Program

Government Implements Export Controls on Strategic Items to Belarus Supporting Russia
(Seoul=Yonhap News) Reporter Hong Haein = On the 7th, an employee at the Strategic Materials Management Institute in Gangnam-gu, Seoul, points to the location of Belarus on the sanctions status board by country.
The government announced on the 6th, after holding the 12th Emergency Response Task Force (TF) meeting on the Ukraine situation, that "based on the judgment that the Republic of Belarus is substantially supporting Russia's invasion of Ukraine, export control measures will also be implemented against Belarus starting today."
From the 7th, the government stated it will additionally enforce export restrictions on strategic materials and designate two entities as entities of concern, while implementing non-strategic material controls in the same manner as for Russia. The entities designated as of concern include the Belarus Ministry of Defense and one other. March 7, 2022
hihong@yna.co.kr
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[Asia Economy Sejong=Reporter Lee Jun-hyung] The government will inject 200 billion KRW in emergency management stabilization funds to support export companies affected by the Ukraine crisis.

The Ministry of Trade, Industry and Energy announced on the 10th that it held an 'Export-Import Logistics Emergency Response Task Force (TF)' chaired by Yeohan-gu, Director General of Trade Negotiations, to discuss such measures. This meeting was organized to listen to the difficulties faced by logistics companies, shipping companies, airlines, and other industry players related to the Ukraine crisis. Plans to expand government support in various areas such as logistics, customs clearance, and finance to respond to export-import disruptions were also discussed.

Industry representatives attending the meeting unanimously agreed that logistics difficulties are worsening. According to the logistics industry, recent restrictions on entry to Ukrainian ports have caused domestic shippers' export cargo to be either returned to Korea without unloading or abandoned due to transportation cost burdens. To make matters worse, transportation on some sections of the Trans-Siberian Railway (TSR) between Russia and Europe has been suspended, and shipping operations to Russia have also been reduced.

The situation in air routes is similar. Korean Air and other national carriers have temporarily suspended cargo flights to Moscow due to refueling difficulties. For Korea-Russia cargo flights, only some cargo planes of the Russian carrier AirBridgeCargo are operating. As a result, domestic companies operating in Russia and Ukraine are reportedly experiencing difficulties in parts procurement and factory operations.

Director Ye Han-gu Attends Public-Private Meeting on Trade and Investment with Russia
(Seoul=Yonhap News) Ye Han-gu, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy (left), speaks at the public-private meeting on trade and investment with Russia held on the afternoon of March 8 at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. 2022.3.8
[Provided by the Ministry of Trade, Industry and Energy. Redistribution and DB reproduction prohibited]
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The government has taken measures to maintain export-import logistics networks and support logistics costs. First, it decided to promptly provide 200 billion KRW in emergency management stabilization funds to export companies. It will also support the establishment and preferential treatment of special guarantees, as well as maturity extensions for existing loans and guarantees. To discover alternative trading partners, it plans to support matching affected companies with dedicated trade experts.

Additionally, the Ministry of Trade, Industry and Energy, together with the Ministry of SMEs and Startups, will support part of the transportation costs and demurrage fees through logistics-dedicated export vouchers only when export cargo is returned to Korea or diverted to alternative destinations. The Korea Customs Service will conduct simplified import inspections for ships returning to Korea and will immediately accept return declarations if the cargo is re-exported to another country.

Director General Ye said, "Logistics difficulties are being reported one after another through channels of related organizations such as KOTRA and the Korea International Trade Association," adding, "We must confirm the difficulties and local logistics situations and work together with related organizations to ensure that our companies do not suffer damage." He added, "The Ministry of Trade, Industry and Energy will closely monitor export-import logistics and continuously cooperate with related organizations to promptly implement response measures."

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