South Korea to Allocate ₩3 Trillion to Support SMEs Amidst US Trade Policy Changes 💰

South Korea is taking proactive steps to support its small and medium-sized enterprises (SMEs) in response to evolving trade policies in the United States. Deputy Prime Minister and Minister of Economy and Finance, Choi Sang-mok, presided over a meeting where a ‘Special Program for Crisis Response’ was established to provide significant financial assistance to these businesses.

Key Measures Announced

• ₩3 Trillion for SMEs: A dedicated program offering up to a 2% point interest rate reduction.
• ₩2 Trillion for Large Exporters: Additional funding to support major exporting companies.
• ₩3 Trillion for Supply Chain Support: Financial aid for SMEs that supply domestic conglomerates, with preferential interest rates.
• ₩1 Trillion for Export Diversification: A new financial program to help companies diversify their export markets and products.
• ₩1 Trillion Supply Chain Stabilization Fund: To stabilize domestic supply chains, expected to be finalized in the first half of the year.

Additional Support Initiatives

The government also plans to enhance support through the Korea Customs Service (관세청). Key initiatives include:

• Establishment of a ‘Tariff Classification Consultation Center’: To assist companies navigating complex tariff structures.
• Fast-Track Preliminary Review for US Export Tariff Classification: Expediting the review process for exports to the US.
• Enhanced Cooperation with US Customs Authorities: Strengthening communication channels to provide timely and accurate information to Korean businesses.

Strategic Goals and Global South Focus

South Korea aims to achieve $50 billion in overseas orders this year. To this end, the government will continuously monitor and manage major projects while diversifying order markets. Special attention will be given to the Global South (주로 남반구에 위치한 신흥국과 개도국 – primarily emerging and developing countries located in the Southern Hemisphere), with tailored strategies to boost economic cooperation and secure more orders.

Continued Vigilance

Despite a 90-day reprieve on mutual tariffs, Minister Choi emphasized the need for continued vigilance. The government is committed to minimizing the negative impact of tariffs on the macroeconomy and will provide proactive support to exporting companies.

By strengthening customs administration and providing essential information, South Korea aims to help its businesses navigate the complexities of US trade policies effectively. 🚀