Ministry of SMEs and Startups and Korea SMEs and Startups Agency Launch Support for Air and Maritime Logistics Costs for SMEs

Compensation Program for Air and Sea Freight Due to COVID-19... Recruiting 1,500 Companies

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Kwon Chil-seung, hereinafter referred to as the Ministry) and the Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 16th that they are recruiting participating companies for the 'Air and Sea Freight Cost Compensation Project due to COVID-19' to alleviate logistics difficulties faced by small and medium enterprises (SMEs) caused by rising air and sea freight costs.

The Ministry and SBC explained that as sea freight rates surged more than threefold compared to April last year and air cargo freight rates remained higher than pre-COVID-19 levels, resulting in damage to exporting SMEs, they decided to provide support for air and maritime logistics costs.

The support targets companies engaged in e-commerce that incurred air transportation costs of 1 million KRW or more or sea transportation costs of 300,000 KRW or more from April to June this year. This year, in addition to air freight, compensation for sea freight, which has sharply increased since the end of last year, has been newly established, providing support within limits of 5 million KRW for air freight and 2 million KRW for sea freight.

Applications for participation in the Air and Sea Freight Cost Compensation Project can be submitted through the GoBiz Korea website from the 19th until July 7th, and detailed inquiries can be made to SBC's Online Export Department. Chairman Kim Hak-do stated, "Despite the impact of COVID-19, last month the country's total exports increased for five consecutive months for the first time in three years, and with the economic recovery of major countries, exports are expected to expand further. SBC will continue to support the resolution of logistics cost difficulties faced by exporting SMEs to secure global competitiveness and sustain the export growth trend."