Government Expands Trade Adjustment Assistance Program... Also Supports Companies Facing Supply Chain Disruptions

Approval of Partial Amendment to the Enforcement Decree of the Trade Adjustment Act at the Cabinet Meeting

Yeohan-gu, Head of the Trade Negotiations Division at the Ministry of Trade, Industry and Energy, is presiding over the 'Indo-Pacific Economic Framework (IPEF) Public-Private Task Force Meeting' on the 29th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Head Ye stated, "IPEF is expected to be a new opportunity for our country, which has aimed to be an open trade nation, and we are positively considering participation in terms of strengthening cooperation on new trade issues such as regional supply chain stabilization and digital trade." / Photo by Moon Ho-nam munonam@

[Asia Economy Sejong=Reporter Lee Junhyung] The scope of the Trade Adjustment Assistance (TAA) program will be expanded from damages caused by Free Trade Agreements (FTA) to include trade damages such as supply chain disruptions.

On the 12th, the Ministry of Trade, Industry and Energy announced that the partial amendments to the Enforcement Decree of the Trade Adjustment Act and the Regulations on the Domestic Measures Committee for Trade Treaties were approved at the Cabinet meeting. Accordingly, the Trade Adjustment Act, which supports companies and workers affected not only by FTAs but also by trade damages through the TAA program, will be enforced starting from the 20th of this month.

With the enforcement of the amended Trade Adjustment Act, the scope of the TAA program will change. Originally, the TAA program's support was limited to damages caused by increased imports under FTAs. However, from the 20th of this month when the amendment takes effect, the support scope will be expanded to cover overall trade damages such as supply chain crises and sanction measures by trade partner countries. Accordingly, the Ministry of Trade, Industry and Energy will be able to support affected companies through the Domestic Measures Committee for Trade Treaties if domestic companies suffer damages due to supply chain disruptions caused by geopolitical conflicts such as the Ukraine crisis.

Companies suffering trade damages can be designated as ‘Trade Damage Support Companies’ and receive support under the TAA program. Trade Damage Support Companies are manufacturing and service companies whose production or sales have decreased by 5% or more due to trade damages lasting more than six months. The Ministry plans to adjust the damage period and the production/sales decrease rate depending on the situation.

Additionally, the Ministry plans to link policy support from related ministries with existing TAA consulting, financing, and worker support. Emergency management stabilization support from the Small and Medium Business Corporation and overseas marketing support from KOTRA are representative linked support measures. The Ministry, together with the Ministry of SMEs and Startups, will also support business restructuring and transformation.

Yeo Hang-gu, Director General of Trade Negotiations at the Ministry of Trade, Industry and Energy, said, “The TAA program has played a supporting role in assisting vulnerable sectors as Korea pursues an open trade policy.” He added, “The expansion of this program to provide legal grounds for supporting companies affected by supply chain crises such as the Ukraine crisis is very meaningful.”

Director General Yeo also stated, “In the future, as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Indo-Pacific Economic Framework (IPEF) become more active, we will expand and develop the TAA program to help support our companies’ damages.”

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