Ministry of SMEs and Startups provides up to 30 million won to companies affected by exports to Russia, Ukraine and Belarus
The photo shows the pier of Sinseondae in Busan Port. [Yonhap News] After Russias invasion of Ukraine, 75% of Korean SMEs exported to both countries suffered damage.
The Ministry of SMEs and Startups held the second meeting of the Emergency Response Task Force in the Small and Medium Enterprises on the 18th and announced the results of the investigation on damage conditions. This survey was conducted on 1,019 companies that exported more than $100,000 to Russia, Ukraine, and Belarus from the 3rd to the 14th and accounted for more than 30% of the export.
Among the difficulties experienced by SMEs, the most serious damage was settling payment. It was followed by logistics difficulties and suspension of export contracts. As the most necessary support policy, they answered logistics cost support, supply of new funds, extension of maturity, and information provision in that order.
The Ministry of SMEs and Startups decided to prepare additional support measures in addition to the provision of loans through the emergency management stabilization fund announced earlier and extension of the maturity of loans and guarantees. For companies that incur return logistics costs, delay fees, and storage fees due to vessel turning and port mooring, etc., a dedicated logistics voucher track will be established to support government expenses up to 14 million won per company. Applications will be accepted starting on the 21st.
A large number of programs will be established to support the discovery of alternative export destinations. A new track dedicated to export vouchers has been established to support up to 30 million won per company as a package for marketing, public relations, and participation in exhibitions. The program to discover alternative export destinations will be announced in April.
Deputy Minister of SMEs and Startups Kang Seong-cheon, who presided over the meeting, said that the size of the uncertainty and difficulties of businesses following the Ukraine crisis is unpredictable.