Export Voucher Program Remains Idle for 5 Months Despite U.S. Tariffs... 133 SMEs Disappear

No new recruitment since Export Baro Program in May
Selection rate only 17.2% despite record-high budget
Some companies left in a blind spot as Export Voucher ends
"Gap must be filled through indirect support measures"

As the budget for the “Export Voucher” program-one of the key measures supporting small and medium-sized enterprises (SMEs) affected by U.S. tariff actions-has been exhausted early, companies are being pushed into a support blind spot. This situation has arisen because new support for companies newly impacted by the Donald Trump administration’s additional tariffs on steel and aluminum derivative products has been blocked. Experts unanimously agree that, given the limited capacity of SMEs to respond, more comprehensive government support is urgently needed.

Containers are stacked at Pyeongtaek Port in Pyeongtaek City, Gyeonggi Province.

According to the government and related industries on October 15, the Ministry of SMEs and Startups has not issued a new call for applications for nearly five months since recruiting companies for the “Export Baro Program,” a part of the Export Voucher initiative, at the end of May. The Export Voucher program is a government export support project in which vouchers are provided to SMEs, allowing them to directly select and utilize services necessary for entering overseas markets, such as overseas marketing, consulting, and logistics costs.

This year’s Export Voucher budget reached a record high of 204.7 billion won, with the government’s original 116.2 billion won proposal supplemented by an additional 88.4 billion won from a supplementary budget. However, due to a surge in companies affected by U.S. tariff policies, the budget was depleted early. Moreover, due to intense competition, a significant number of applicants were unable to receive support. According to the office of Assemblyman Jeong Dongman of the People Power Party, the selection rate for export companies in automotive parts, steel, and aluminum-industries subject to high tariffs-was only 17.2% this year, while the rejection rate reached 27%.

An official from the Ministry of SMEs and Startups explained, “This year, the budget was large because we implemented programs specifically for companies affected by U.S. tariffs, and the high number of applicants led to the budget being exhausted early.” The official added, “The cumulative number of supported companies since January this year is about 5,500.”

As a result, companies affected by the Trump administration’s expanded tariffs on steel and aluminum derivative products have found themselves unable to receive support through the Export Voucher program. Since the additional announcement regarding derivative products in August, domestic SMEs have repeatedly complained that the complex criteria make it difficult to calculate content and determine the actual tariff amounts. In response, the government immediately proposed measures such as expanding the scale of Export Voucher support and raising the upper limit for logistics cost assistance. However, these measures have not proven effective in the field.

Meanwhile, the damages suffered by export-oriented SMEs are snowballing. In August, the export value of Korean SMEs to the United States was 1.295 billion dollars, a decrease of 379 million dollars compared to the previous month’s 1.674 billion dollars. During the same period, 133 companies in the steel, aluminum, and automotive parts sectors-subject to high tariffs-closed down.

Experts stressed that until next year’s budget is allocated, the government must fill the gap through various indirect measures. Han Seong-sook, Minister of SMEs and Startups, stated during the National Assembly audit on October 14, “Once next year’s budget is finalized, we will execute the Export Voucher budget as early as possible.” Jeong Eunae, a research fellow at the Korea Small Business Institute, said, “The gap in the Export Voucher program must be thoroughly filled through indirect support measures such as loans,” adding, “Various support measures are needed to help domestic export-oriented SMEs expand their sales channels.”