"75% of Russian and Ukrainian Exporting SMEs Suffer Damage"… Ministry of SMEs and Startups Announces Additional Export Marketing Measures

Emergency Response TF Meeting for SMEs Held
Results of Survey on 1,019 SMEs Announced
Logistics Voucher: 14 Million KRW National Subsidy per Company

Kang Sung-chun, Vice Minister of the Ministry of SMEs and Startups

[Asia Economy Reporter Kim Bo-kyung] It has been found that 75% of our export small and medium-sized enterprises (SMEs) dealing with Russia, Ukraine, and other countries have recently suffered damage due to a series of incidents. The government has prepared export marketing measures, including establishing programs to reduce companies' logistics cost burdens and support the discovery of alternative export destinations.

On the 18th, the Ministry of SMEs and Startups held a 'Emergency Response Task Force (TF) for the SME Sector' meeting and a business consultation at the Seoul Regional Headquarters of the Korea SMEs and Startups Agency in Geumcheon-gu, Seoul.

The recent Ukraine situation has prolonged impacts on product trade, financial markets, and raw material prices due to the ongoing deadlock. Export SMEs are facing significant difficulties such as delayed payment settlements, ship turnarounds, and disruptions in new contracts due to strengthened export controls against Russia.

On this day, the TF announced the results of a proactive damage survey targeting SMEs expected to be affected by the Ukraine situation.

The survey was conducted from the 3rd to the 14th and targeted 1,019 companies with ① export amounts to Russia, Ukraine, and Belarus of over $100,000 and ② an export ratio to these three countries of 30% or more based on last year's data.

The survey results showed that 75.0% of the responding companies reported damage. It appears that the impact of the situation on the SME sector is becoming visible. Their main difficulties were payment delays (46.0%), logistics difficulties (29.3%), and suspension of export contracts (25.7%).

Additionally, most affected companies are struggling to find alternative trading partners, and the most needed support policies were logistics cost support (31.2%), new funding supply (30.1%), maturity extension (23.2%), and information provision (21.4%), in that order.

[Image source=Yonhap News]

Following the previously announced financial support measures, the Ministry of SMEs and Startups announced additional support plans in the export marketing sector on this day.

A dedicated logistics voucher track will be newly established for companies that have incurred damages such as return logistics costs, demurrage fees, and storage fees due to ship turnarounds and port berthing, with up to 14 million KRW in national funding support per company.

Programs to support the discovery of alternative export destinations will also be newly established in large numbers. A dedicated export voucher track will be prepared to support marketing, promotion, and participation in exhibitions as a package, providing up to 30 million KRW per company.

In addition, a one-on-one trade expert matching program will be conducted for 100 companies. Extra points will also be newly awarded for global shopping mall entry, participation in overseas export exhibitions, and Pre-BI (Pre-Business Intelligence) programs.

Kang Sung-cheon, Vice Minister of the Ministry of SMEs and Startups, who presided over the meeting, said, "The anxiety and difficulties of companies due to the Ukraine situation are immeasurable, so the government will carefully respond with all possibilities in mind to minimize damage to SMEs."

He added, "I urge related organizations such as the Korea SMEs and Startups Agency to ensure that the export marketing programs announced today are delivered to the field as soon as possible and that execution is carried out thoroughly."

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