Ministry of SMEs and Startups to Provide Emergency Logistics Vouchers Worth 10.5 Billion Won for Export SMEs Affected by Middle East Crisis

Applications Open for Middle East Exporting SMEs Starting March 20
Up to 10.5 Million Won in Support Available

The Ministry of SMEs and Startups announced on March 16 that it will implement an emergency logistics voucher program to swiftly support export-oriented small and medium-sized enterprises (SMEs) facing surging logistics costs due to heightened geopolitical instability in the Middle East.

There are growing concerns about a decline in the export competitiveness of SMEs, as maritime freight rates have soared and additional costs such as war risk surcharges have increased due to disruptions at key logistics hubs in the Middle East, including the Red Sea and the Strait of Hormuz. In response, the Ministry has urgently allocated a total of 1.05 billion won in vouchers to stabilize the management of affected SMEs, and will begin accepting applications from March 20.

First, a new support category specialized for the Middle East will be established, and the support limit will be increased. SMEs that are currently exporting to, or have signed contracts with, companies in the Middle East will be eligible for urgent support of up to 10.5 million won (with a 70% government subsidy rate). Actively reflecting feedback from the field, the Ministry has greatly expanded the existing support items to include ▲war risk surcharges (WRS), ▲logistics return costs due to port closures, ▲local detention fees, and ▲alternative destination rerouting costs. In addition, even companies selected for the first round of this year’s export voucher program can receive additional support if their export performance to the Middle East is verified, thereby increasing the flexibility of the policy.

A ‘fast-track review system’ will also be introduced, issuing vouchers within three days. Application documents and procedures have been simplified to ensure timely support for businesses affected by the conflicts. Applicant companies will only need to submit export performance records and evidence of damage, and will be notified of their support eligibility within three days, enabling them to secure the golden time for funding execution.

Applications for the program can be submitted online via the ‘Export Voucher Dedicated Platform’ starting March 20, and detailed information is available through the Export Voucher Customer Service Center. Lee Soonbae, Director General for Global Growth Policy at the Ministry, stated, “We will do our utmost to provide prompt and practical support so that export-oriented SMEs struggling with the situation in the Middle East can reduce their logistics cost burden and continue pioneering overseas markets.”

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