Gangwon Expands Support for Export Companies Amid Middle East Conflict...Enhanced Financial, Logistics, and Insurance Measures

Gangwon Province to Provide 7 Billion Won
in New Management Stabilization Funds
Up to 80% of Logistics Costs to Be Covered

Gangwon Provincial Government (Governor Kim Jin-tae) has announced urgent measures to minimize the impact on local export companies as geopolitical risks in the Middle East have intensified due to the recent escalation of armed conflict between the United States, Israel, and Iran. Concerns are also mounting over rising international shipping costs and growing logistics disruptions.

A view of the Gangwon Provincial Government Building. Provided by Gangwon Provincial Government

First, the province will provide a total of 7 billion won in financial support to stabilize the management of export companies. Previously, loans of up to 300 million won per company at a fixed annual interest rate of 1.5% were offered only to businesses affected by U.S. tariff policies. However, due to the growing uncertainty in the global trade environment stemming from recent conflicts in the Middle East, the scope of support will be expanded to include all export companies in the province. This measure aims to alleviate the liquidity burden on companies facing a deteriorating trade environment.

Support for logistics costs will also be strengthened. In response to the sharp increase in shipping rates caused by the Middle East conflict, the province will cover up to 80% of logistics expenses, including international marine and air transportation costs, as well as international express delivery (EMS) fees. Additionally, return shipping costs will be newly included as an eligible support item, and the maximum support limit per company will be increased to 5 million won, further easing the burden on exporters.

Export insurance support will also be expanded. The province will subsidize insurance premiums by up to 1.5 million won per company for products such as short-term export insurance, export credit guarantees, foreign exchange fluctuation insurance, and group insurance. In collaboration with Korea Trade Insurance Corporation, the province will also pursue an extension of insurance premium discounts and an increase in guarantee limits. Furthermore, logistics and insurance premium support items will be incorporated into the Gangwon Export Voucher program, allowing affected companies to utilize support more flexibly.

Alongside these emergency measures, the province will accelerate efforts to diversify export markets. Initiatives will be launched to expand into emerging markets such as Central Asia, Mongolia, and Southeast Asia, with overseas roadshows and market development delegations focusing on the province's main export sectors, including medical devices and biotechnology. To quickly identify challenges faced in the field, a joint support center for export difficulties will be established, and customized support programs will be linked to companies affected by these issues.

An official from Gangwon Provincial Government stated, "The current Middle East risk could directly impact local export companies by causing contract delays and increased logistics costs. The province will work to minimize company losses through a comprehensive response that integrates financial, logistics, insurance, and market diversification support. We are committed to strengthening an export response system that remains resilient in the face of trade uncertainty."

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