Jungjinkong Supports Exporting SMEs in Responding to CBAM

SME CBAM Response Infrastructure Construction Project
Recruitment of 2nd Phase Participating Companies
Strengthening Global Climate Regulation Resilience

The Small and Medium Business Corporation announced on the 13th that it is recruiting the second round of participating companies for the ‘2024 SME CBAM Response Infrastructure Construction’ project, which supports export SMEs in responding to the EU CBAM (Carbon Border Adjustment Mechanism).

The EU CBAM is a type of tariff system where companies exporting six items?steel, cement, electricity, fertilizer, aluminum, and hydrogen?to the EU must bear costs corresponding to the carbon emissions generated during the production process of their products.

This regulation has been fully implemented since October last year, with a transition period until 2025 during which only emission reporting is mandatory. From 2026, additional obligations such as emission verification and the purchase and submission of CBAM certificates will be required, making prior preparation crucial for companies subject to CBAM.

Small and Medium Business Corporation

The Small and Medium Business Corporation recently surveyed 235 SMEs exporting the six major items subject to CBAM regulations regarding difficulties and policy support needs related to CBAM. The results showed that companies face the greatest challenges in ‘calculating and complying with emission verification procedures’ and require support for ‘customized CBAM consulting’ and ‘practical training on carbon emission management.’

The Corporation’s ‘SME CBAM Response Infrastructure Construction’ project is a newly launched initiative this year to alleviate export difficulties faced by SMEs. The main support includes ▲consulting support for carbon emission calculation and reduction through specialized institutions ▲verification support for carbon emissions through verification agencies.

The support targets manufacturing SMEs currently exporting or planning to export CBAM-subject items to the EU. Upon selection, consulting worth 12 million KRW and verification worth 8 million KRW will be supported, up to a maximum of 20 million KRW. The application period is until the 31st of this month, and detailed information including announcements can be found on the ESG Integrated Platform.

Kang Seok-jin, Director of the Small and Medium Business Corporation, stated, “This year and next year are the golden time for companies to prepare in advance before the EU CBAM regulation is finalized in 2026,” adding, “The Corporation will actively support SMEs and ventures to establish a carbon-neutral management foundation and strengthen their resilience amid climate regulations.”

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