Seoul Launches Emergency Logistics Cost Support Program... Up to 30 Million Won per Company

Easing Logistics Cost Burden for Seoul Export SMEs
Up to 90% of International Shipping Costs Covered
Streamlined Document Review for Swift Support

The Seoul Metropolitan Government is implementing an "Emergency Logistics Cost Support Program," which will provide up to 30 million won per company to help alleviate the logistics cost burden on businesses resulting from the Middle East crisis.

According to the city government on April 23, as the prolonged instability in the Middle East continues to increase operational burdens for businesses and small merchants, the city has received 195 reports of difficulties from companies. By type, transport disruptions accounted for 69 cases (35%), the most frequent, followed by increased logistics costs at 22 cases (11%), and uncollected payments at 7 cases (4%). In particular, issues related to logistics, such as rising ocean freight rates, shipping delays, and rerouted transport, have been concentrated.

Yonhap News

Some companies have experienced difficulties in cash flow management due to delayed collection of export proceeds caused by shipping delays, or due to additional expenses resulting from increased freight rates.

Reflecting these on-the-ground circumstances, the Seoul Metropolitan Government has decided to fully implement the Emergency Logistics Cost Support Program to ease the burden of logistics costs arising from the Middle East crisis. The program will support up to 90% of international shipping costs for small and medium-sized export companies located in Seoul, up to a maximum of 30 million won per company.

Eligible companies are those exporting to, or using shipping routes that pass through, the Middle East and North Africa regions. Support is available if disruptions occur during the logistics process, such as transport delays, route changes, or the imposition of war risk surcharges. In addition to international shipping costs, incidental expenses incurred during the logistics process, including fuel surcharges, war risk insurance premiums, port handling charges, and warehousing fees, will also be covered under the program.

Under this program, companies will first pay logistics costs and then receive reimbursement upon submission of supporting documentation. Applications can be submitted through the Seoul Business Agency website. The city plans to streamline the review and reimbursement procedures after application to ensure swift support.

Lee Sooyeon, Director of Economic Affairs at the Seoul Metropolitan Government, stated, "The Seoul Metropolitan Government will continue existing support programs to reduce the burden on businesses and small merchants, and will respond in ways tailored to real-world circumstances."

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