Middle East Conflict and Soaring Oil Prices... Ministry of SMEs and Startups Deploys Emergency 130 Billion Won Export Voucher Support

Simultaneous Recruitment of 80 Billion Won General Vouchers and 50 Billion Won Logistics-Only Vouchers
Priority Selection for Companies Affected by the Middle East Conflict

The Ministry of SMEs and Startups announced on the 15th that it will launch the 'Export Voucher Support Program' worth a total of 130 billion won to respond to the escalating uncertainty in the global trade environment, such as the prolonged Middle East conflict and changes in U.S. tariff policies, and to ease the burden on exporting SMEs.

This support is an emergency measure to protect Korean exporting SMEs suffering from a sharp increase in logistics costs, as evidenced by the Shanghai Containerized Freight Index (SCFI) recently reaching 1,890.77 points and rising for seven consecutive weeks, while freight rates on Middle East routes have soared to a record high of 4,167 dollars per TEU.

The Ministry will first provide general vouchers worth 80 billion won to support about 2,300 companies. In particular, companies facing disruptions in local exports due to conflicts in the Middle East will be given priority selection to ensure timely support for market diversification. In addition, additional points will be awarded during evaluation to companies in strategic sectors such as petrochemicals, which have been directly impacted by rising oil prices, and to K-beauty and K-fashion companies with strong global competitiveness. The maximum support per company will be up to 100 million won, depending on export volume. Additional limits will also be provided to companies that diversify export destinations, high-growth exporters, and those utilizing tech services.

To ease the burden of logistics costs, 50 billion won worth of logistics-only vouchers will also be provided. The scope of this program has been significantly expanded from previously focusing on the Middle East to now include all SMEs with records of international shipping, thereby minimizing gaps in policy coverage.

The range of supported items has also been broadened to reflect feedback from the field. In addition to existing sea and air freight and insurance fees, the program now covers ▲free sample shipping costs at buyer's request ▲comprehensive logistics (fulfillment) services ▲overseas warehouse rental fees ▲pre-shipment inspection fees, and more. The policy has also been made more flexible, allowing companies that have already been selected for this year’s export voucher program to apply for additional support through the logistics-only voucher.

The Ministry has significantly accelerated administrative procedures so that companies can feel the support in a timely manner. By fully adopting a 'fast-track' process that replaces on-site evaluations with document reviews, the selection period, which previously took over three months, will now be shortened to within one month. In addition, the settlement process after voucher usage will be simplified from four stages to three, minimizing the administrative burden on companies. Applications can be submitted online via the export voucher website starting on the 17th.

Lim Dongwoo, Acting Director for Global Growth Policy at the Ministry, stated, "This program will go beyond simple financial support to serve as an 'export safety net' protecting companies from global risks," adding, "We will expand the pool of eligible companies and further accelerate the process so that SMEs can maintain export momentum despite external uncertainties."

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