Deputy Minister Lee Eokwon of the Ministry of Economy and Finance Chairs the 12th Emergency Response Task Force (TF) Meeting on the Ukraine Crisis
[Asia Economy Sejong=Reporter Kwon Haeyoung] The government will also implement export control measures against the Republic of Belarus, which is effectively supporting Russia's invasion of Ukraine.
The government made this decision at the '12th Emergency Response Task Force (TF) Meeting on the Ukraine Situation' held at the Government Seoul Office in the afternoon, chaired by Lee Eokwon, the 1st Vice Minister of the Ministry of Economy and Finance.
The export control measures against Belarus will be implemented in a manner similar to the government's measures against Russia. Starting from the 7th, restrictions on the export of strategic goods and the designation of two additional entities of concern will be enforced, and controls on non-strategic goods will also be implemented in the same manner as those for Russia. Since the trade volume with Belarus is very small, the impact on our economy is expected to be minimal. Exports to Belarus last year amounted to 70 million USD, and imports were 80 million USD, ranking 118th and 97th respectively in trade volume.
The government will continue to hold industry briefings to provide information on the main contents of the export control measures against Russia and government support plans. Work has already begun to establish the legal basis for implementing export controls against Russia.
A government official stated, "Following the restriction on the export of strategic goods to Russia, we have added 49 Russian entities of concern to the list," adding, "Through close consultations between Korea and the United States, Korea has become an FDPR (Foreign Direct Product Rule) exemption country, allowing our government to exercise export control authority. Accordingly, we will promptly establish the domestic legal basis for controlling 57 non-strategic goods."
For companies experiencing logistical difficulties due to the Ukraine situation, support has begun for cargo storage and inland transportation services at the KOTRA joint logistics center in the Russia-Ukraine neighboring region. The government is also considering a plan to settle transportation costs from logistics-dedicated export vouchers when export cargo is rerouted domestically or to alternative destinations due to local circumstances such as port controls.
Additionally, a 2 trillion KRW emergency financial support program will be swiftly implemented, and the government will actively consider expanding the scale and scope of support based on corporate demand and execution status.
Furthermore, on the 7th, the government will announce the 'Small and Medium Enterprise (SME) Sector Response Plan to the Ukraine Situation,' which includes loan and guarantee support for SMEs affected by the Ukraine crisis, discovery of alternative trading partners, and supply chain management. This plan includes providing emergency management stabilization funds to companies whose exports to Russia and Ukraine have exceeded a certain ratio in the past year, as well as expanding guarantee limits and offering preferential guarantee ratios and fees.
In addition, the government has secured additional quantities from other regions through alternative national tenders due to difficulties in importing Ukrainian corn for food and feed. In the overseas construction sector, legal consulting will be provided in cooperation with domestic law firms to SMEs and mid-sized companies facing difficulties in ongoing projects and new contract acquisitions due to the exclusion of Russian banks from the international financial messaging network (SWIFT).
A government official said, "As the impact of the Ukraine situation becomes increasingly visible, the government will focus on addressing actual problems and difficulties as they arise and promptly devise solutions," adding, "We will closely monitor the possibility of prolonged or expanded conflict and supplement immediate action plans to proactively respond to potential worsening situations."
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