Additional 100 Billion KRW Supplied to Alleviate Logistics Cost Increase Challenges for SMEs

Securing Support Budget Through 100 Billion KRW Increase in Emergency Management Stabilization Fund
Focused Support for Export SMEs Expected to Suffer from Rising Logistics Costs

Small and Medium Business Corporation

[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 5th that they will provide an additional 100 billion KRW in policy funds to support small and medium enterprises (SMEs) facing management difficulties due to the rapid increase in logistics costs.

Due to the ongoing logistics supply disruptions causing significant increases in maritime and air freight rates, worsening the business environment for SMEs, SBC has proactively secured an additional 100 billion KRW in emergency management stabilization funds through changes in the fund operation plan to supply liquidity to export SMEs and support companies affected by the prolonged and recurring COVID-19 pandemic.

To enhance the effectiveness of support for companies affected by rising logistics costs, SBC has expanded the eligibility for emergency management stabilization funds to include companies that have directly exported within the past year, those that have signed export contracts within the past six months, and companies engaged in international freight forwarding. Considering potential damages to SMEs caused by increased logistics costs, the application requirements have been relaxed to allow applications even if the company does not meet the management difficulty criteria such as a decrease of 10% or more in sales or operating profit, with support available up to 300 million KRW.

Applications for policy funds can be made online through the SBC website, and detailed information can be obtained by contacting one of the 32 regional SBC branches nationwide or the policy fund information call center.

Chairman Kim Hak-do stated, "Given the worsening logistics situation, it is a crucial time to find a breakthrough for our SMEs to overcome the crisis," adding, "SBC will actively support the stabilization of management and the recovery of export competitiveness of export SMEs through proactive liquidity supply."