"Logistics Costs Are the Biggest Burden"... Ministry of SMEs and Startups to Launch 'K-Export Logistics Voucher' by Next Year

Export Voucher Support Increased to 420 Billion Won
Temporary Doubling of International Shipping Cost Limit
Establishment of Export-Oriented Company Development Model

The Ministry of SMEs and Startups has rolled up its sleeves to support small and medium-sized enterprises (SMEs) affected by the United States' imposition of a 15% reciprocal tariff. The ministry plans to significantly expand support for logistics costs, which many SMEs have cited as a major challenge, and to quickly deliver complex tariff information and policy updates through various channels such as associations and organizations.

On September 3, the Ministry announced these measures in its "Support Plan for SMEs in Response to the Implementation of U.S. Reciprocal Tariffs." First, in collaboration with the Korea Customs Service, the Ministry will promptly provide difficult-to-access tariff information and policy updates to companies via 15 export support centers, the Korea Federation of SMEs, and various associations and organizations. In particular, with the recent significant expansion of steel and aluminum derivative products, the Ministry will expand specialized consulting on item-specific tariffs for companies struggling with calculating content value and related issues.

In addition, the Ministry will continue to provide policy funds totaling 4.6 trillion won to companies affected by or concerned about the tariffs. The total amount available for special guarantees supporting export diversification will be increased from 300 billion won to 500 billion won to further back efforts to diversify export markets.

The scale of export vouchers for tariff response consulting will also be greatly expanded. The total support for export vouchers will be increased to 420 billion won, and for companies suffering significant losses, the government subsidy will be expanded by up to 50%. In particular, support for logistics costs will be strengthened. The cap for international shipping cost support under export vouchers will be temporarily doubled from 30 million won to 60 million won, and a new "K-Export Logistics Voucher" program worth 10.5 billion won will be established by next year to provide stable logistics cost support. According to a joint survey conducted last month by the Ministry and the Korea Federation of SMEs, about 63.1% of responding companies said that the tariffs have affected their exports to the United States, and among them, 73.2% identified "logistics support" as the most needed measure.

At the same time, measures to enhance export competitiveness will be implemented. The government will establish a model to foster export-oriented companies, help them develop export strategies, and support overseas marketing. In addition, to further expand exports in the particularly strong "K-Beauty" sector, the government will establish complex spaces integrating "experience, culture, tourism, and industry" in beauty industry clusters to serve as bases for export expansion.

To prepare for changes in the external environment, the government also plans to actively encourage large and small companies to enter overseas markets together. When large companies relocate production facilities with their SME partners, the "Large-SME Cooperation Consortium" will be eligible for up to 1.5 billion won per consortium for up to three years. Relocation of bases from certain countries to third countries, known as "P-turn," will also be included in the support scope.

Institutional improvements will also be made. To systematically support the export competitiveness of SMEs, the legal basis for export support programs, currently scattered across individual laws, will be unified under a new comprehensive law, and any insufficient legal grounds for support will be supplemented.

Minister Han Seongsook of the Ministry of SMEs and Startups stated, "We will use all available channels, including associations and organizations, to quickly deliver tariff and policy information so that the impact of reciprocal tariffs on exports can be minimized," adding, "We will spare no policy support to help our SMEs secure export competitiveness, including diversifying export items by leveraging K-Soft Power."

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