KOTRA Provides Up to 7 Million KRW per Company for SME Logistics Costs Support

Items with Significant Economic Weight Such as Materials, Parts, and Equipment

Yoo Jung-yeol, President of KOTRA. (Photo by KOTRA)

[Asia Economy Reporter Moon Chaeseok] KOTRA announced on the 26th that it plans to provide up to 7 million KRW per company to alleviate difficulties in import logistics for small and medium-sized enterprises (SMEs) caused by unstable supply of raw materials for export.

This support targets import items of this year's tariff quota items and manufacturers in the materials, parts, and equipment industries. Tariff quotas are a system where, to promote the import of certain goods necessary for securing supplies and industrial competitiveness, tariffs are imposed at a reduced rate of up to 40% off the basic tariff rate up to a certain quota depending on the item. The manufacturers eligible for support are those classified under the 'Enforcement Rules of the Special Measures Act to Strengthen the Competitiveness of the Materials, Parts, and Equipment Industry,' which has been in effect since January.

Eligible companies can receive 'fulfillment services' such as temporary cargo storage, customs clearance, and inland transportation overseas at their desired location among 238 overseas joint logistics centers operated by KOTRA until November 30. Support is provided up to 7 million KRW per company.

M Company, which imports polyethylene micro powder, said, "It is difficult to predict logistics conditions, so we want to order in bulk at once, store it in overseas joint warehouses, and then bring it in via inexpensive sea freight. Using it like an overseas delivery agency where we have our own address and can take out goods whenever we want will reduce the burden of import logistics."

Recently, among import companies responding to a survey by KOTRA of small and medium-sized enterprises and mid-sized companies, 24.1% answered that "overseas logistics warehouses for imports are necessary." The main import items were raw materials at 44.5%, consumer goods at 34.8%, and intermediate goods at 20.7%.

KOTRA operates 238 exclusive joint logistics centers for Korean companies in 121 cities worldwide, including Los Angeles, Amsterdam, Shanghai, and Ho Chi Minh City. In the first half of the year alone, 1,315 companies exported over 1.2 billion USD (about 1.7 trillion KRW) through this service. KOTRA President Yoo Jung-yeol said, "As the global economic environment is rapidly changing, more agile responses are needed than ever before," adding, "We will strive harder to respond more flexibly to diverse logistics demands."

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