Middle East Instability Puts Exporting SMEs on Alert... Government Launches Emergency Support

Ministry of Trade, Industry and Energy Holds Meeting Led by Trade and Investment Policy Chief

Examining Logistics and Export Payment Collection Challenges

Expanded Emergency Export Vouchers and Trade Insurance Financial Support

Assistance for Discovering Alternative Markets

On the 5th, as international oil prices rise due to the war between the United States and Iran, gasoline prices are displayed at a gas station in downtown Seoul. 2026.03.05 Photo by Dongju Yoon

As instability in the Middle East intensifies, the government has stepped in to support small and medium-sized enterprises (SMEs) exporting to the region.

On March 5, the Ministry of Trade, Industry and Energy held a meeting at the Trade Center in Samseong-dong, Seoul, presided over by Trade and Investment Policy Chief Kang Gamchan, to discuss emergency support measures for SMEs exporting to the Middle East.

The meeting was attended by relevant organizations such as Korea Trade-Investment Promotion Agency (KOTRA), Korea Trade Insurance Corporation, Korea International Trade Association, and Korea SMEs and Startups Agency, as well as industry associations representing various sectors. They shared the difficulties faced by companies and discussed support measures. Since February 28, the Ministry has been operating an emergency task force to monitor and respond to crude oil and gas supplies, industrial supply chains, and export and logistics situations.

The industry cited major challenges including disruptions in maritime shipping, increased freight rates and war risk surcharges, liquidity pressures caused by delays in collecting export payments, difficulties in finding new buyers due to the worsening situation in the Middle East, and a lack of local market information.

In response, the government and export support agencies have decided to launch emergency support measures. KOTRA will announce emergency export vouchers for SMEs and mid-sized companies with export records (including contracts) to the Middle East, starting from March 11. The program will introduce new items covering return shipping costs and war risk surcharges, and a fast-track process will issue vouchers within three days of application for companies most severely affected. Overseas marketing support will also be expanded, including market research for alternative markets and matching with new buyers.

The Korea Trade Insurance Corporation will implement an emergency financial support program for SMEs and mid-sized companies exporting to countries near the Strait of Hormuz, such as the United Arab Emirates (UAE), Saudi Arabia, Iraq, Qatar, Kuwait, Iran, and Bahrain. The maximum guarantee limit for export production funds will be increased by up to 1.5 times, and guarantee maturities will be extended. In addition, to ease liquidity pressures, the corporation will provide advance insurance payments and early cash conversion of export receivables in the event of an insurance claim. Free overseas credit investigation services will be offered, and the "Trade-sure" consulting program will be provided to help diversify export partners.

The Korea International Trade Association plans to build a database of exporters in urgent need of support based on the scale and proportion of exports to the Middle East. The association will check difficulties faced by exporters, connect them with support agencies, and strengthen the provision of local market information. In particular, it will use its network of shipping companies and logistics industry partners to quickly provide information on the feasibility of maritime transport and other logistics data.

Policy Chief Kang stated, "We will reduce the burden on export SMEs struggling due to instability in the Middle East and minimize the negative impact on the current upward trend in exports," adding, "We will also prepare for the possibility of a prolonged situation in the Middle East by working closely with the Ministry of SMEs and Startups, the Ministry of Oceans and Fisheries, and related agencies."

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