Sejong City Operates Emergency Response Team for SMEs to Preemptively Address 'Middle East Crisis'

Second Inspection Meeting Held on March 5

Preemptive Response to Risks Such as Rising Oil Prices and Logistics Costs


Lee Seungwon, Deputy Mayor for Economic Affairs: "We Will Strive to Provide Practical Support to Businesses If They Are Affected"

Scene from the 2nd Inspection Meeting of the Emergency Response Team in Sejong City (Photo by Sejong City)

Lee Seungwon, Deputy Mayor for Economic Affairs of Sejong City, recently commented on the 'Middle East Crisis', stating, "While the direct impact on local businesses is currently limited, it is crucial to take preemptive action as external uncertainties are increasing." He added, "If any companies are affected, we will work closely with relevant organizations to provide practical support to these businesses."

Deputy Mayor Lee made these remarks while presiding over the second inspection meeting of the Emergency Response Team for Small and Medium-sized Enterprises' Damages, held at City Hall on March 5.

Sejong Special Self-Governing City has formed and is operating an emergency response team to proactively address economic risks arising from the recent U.S.-Iran military conflict.

The Emergency Response Team is centered around the city's Corporate Support Division and includes six related organizations: Sejong Technopark, Sejong Job & Economy Promotion Agency, Sejong Chamber of Commerce and Industry, Korea International Trade Association, Korea Trade-Investment Promotion Agency, and Korea Trade Insurance Corporation.

At the first inspection meeting on March 2, the team reviewed the impacts of rising international oil prices and maritime freight rates, as well as increased exchange rate volatility triggered by the Middle East crisis, and discussed response strategies.

The second inspection meeting focused on further examining the damage situation among local businesses in line with government-level responses, such as the Ministry of Trade, Industry and Energy's real economy inspection meeting, and on establishing a prompt support system.

Currently, the majority of local companies have already secured their supply of raw materials, so no immediate damages have been reported.

However, if the crisis is prolonged, such as with a blockade of the Strait of Hormuz, it is anticipated that there will be economic repercussions, including increases in raw material prices and delays in raw material transportation times.

In response, the city has decided to operate a preemptive Damage Report Center for affected companies, accept applications from businesses impacted by the Middle East crisis, and review preferential interest rate support (interest subsidies) for management stabilization loans for small and medium-sized enterprises to prepare for possible business difficulties.

Meanwhile, companies affected by the Middle East crisis can contact the city's Damage Report Center for support or consultation regarding damages.

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