Chief of Staff Kang Hoon-sik Orders Measures for U.S. Tariffs on SMEs and Mid-Sized Firms, Calls for Review of Additional Real Estate Policies
by Lim Chulyoung
Published 18 Aug.2025 18:04(KST)
Kang calls for urgent support for SMEs and mid-sized firms hit by U.S. tariffs
Orders preemptive review of strong measures, including housing supply, as Seoul apartment prices rebound in early August
Chief Presidential Secretary Kang Hoon-sik has instructed his aides to devise measures to mitigate the impact on small and medium-sized enterprises (SMEs) and mid-sized companies resulting from U.S. tariff impositions. He also directed them to preemptively review strong measures, including supply policies, in response to the recent temporary uptick in Seoul apartment prices, which had been on a downward trend following the June 27 real estate policy.
On August 18, presiding over a senior aides meeting at the presidential office in Yongsan, Seoul, Kang noted that U.S. reciprocal tariffs of 15%, as well as tariffs imposed on items such as automobiles and steel, have had a significant impact. "Exports to the U.S. from January to July this year have dropped by up to 15% compared to the same period last year," he said. "Unanticipated tariffs like these inevitably become hurdles for our companies seeking to enter the U.S. market."
Kang further pointed out, "Compared to large corporations with ample financial resources, SMEs and mid-sized companies are at greater risk of facing management difficulties due to the tariff imposition." He called on relevant ministries to develop both short-term measures, such as emergency management fund support and trade insurance, as well as fundamental strategies for structural improvement and export competitiveness, including exploring alternative markets and transitioning to high-tech industries.
He also instructed that follow-up measures be preemptively reviewed in the wake of the "ultra-strong" real estate policy implemented in June, which capped mortgage loans at 600 million won. Kang stated, "The increase in real estate loans has slowed, and other loans, such as credit loans, have decreased by 1.9 trillion won. Funds that had been concentrated in non-productive areas like real estate are now flowing into the stock market, paving the way for companies to develop innovative technologies and create jobs through productive investment."
However, Kang cautioned, "It is important to note that, in the first week of August, Seoul apartment prices, which had been stabilizing and trending downward since the policy announcement, temporarily reversed and began to rise." He instructed that trends in household debt and the real estate market be closely monitored, and that, if necessary, the implementation of strong measures-including housing supply policies-be reviewed in advance.
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