Lee Jae-myung Visits Export SMEs on the 11th
Industry Voices Concerns: "Rising Exchange Rates and Oil Prices Strain Finances"
Discussions on Expanding Export Volume Guarantees and Ministry of Industry and Trade Notices
The Democratic Party of Korea has decided to seek solutions in each standing committee of the National Assembly based on the difficulties faced by export companies whose management has deteriorated due to domestic and international circumstances. The Political Affairs Committee plans to discuss expanding the scope of export volume guarantees, while the Industry, Trade, Energy, Small and Medium Enterprises and Startups Committee will discuss the Ministry of Industry and Trade's export restriction notices on items to Russia and other countries.
At the 'On-site Meeting to Listen to the Difficulties of Export Companies with Deteriorating Management' held on the afternoon of the 11th at Abiman Engineering, a small and medium-sized machinery and equipment manufacturing company located in Hwaseong, Gyeonggi Province, Representative Lee said, "We must realize that as a country that lives off exports, it is difficult to survive with only volume and price competitiveness," adding, "The government needs to consider how to support the advancement of manufacturing, and although we are the opposition party, we will make efforts together in each standing committee based on the many stories heard today." Abiman Engineering is a first-tier vendor (partner company) of the American automobile manufacturer Ford, supplying automation equipment and more.
The reason Representative Lee pledged to devise measures in each standing committee is that the difficulties of export companies are increasing due to worsening domestic and international conditions. Kang Seong-yeol, CEO of Abiman Engineering, stated, "Our company generates 50% of its revenue from exports, but due to the sharp rise in exchange rates and oil prices, our financial situation is very difficult," adding, "Automated equipment that was delivered has been canceled and returned, worsening the management of not only us but the entire small and medium-sized enterprise sector."
As a related measure, the Political Affairs Committee will first look for ways to expand the scope of export volume guarantees provided by institutions such as the Korea Technology Finance Corporation and the Korea Credit Guarantee Fund. Democratic Party spokesperson Kim Seong-hoe said, "Currently, companies can only insure 3-5% of their total export volume, and there have been voices from companies suggesting that the scope should be expanded to 30%," adding, "There is also an opinion that if the amount of capital increases, coverage can be expanded without the government paying more."
While touring the site, when CEO Kang lamented that "equipment scheduled to be shipped in March is still awaiting shipment," Representative Lee responded, "This also becomes an issue with the ordering party," and asked, "Is there no deposit guarantee or fundamental solution?"
Democratic Party lawmakers belonging to the Industry, Trade, Energy, Small and Medium Enterprises and Startups Committee plan to question the Ministry of Industry and Trade's strategic goods export-import notice at the plenary session scheduled for the 19th. Spokesperson Kim said, "There was a company exporting semiconductors to Russia, and even during the Ukraine war, they initially exported with permission, but after the Ministry of Industry and Trade's notice, all shipments were blocked, preventing exports," adding, "There was a suggestion that instead of broadly blocking volumes, exports should be allowed for previously approved cases."
Spokesperson Kim also stated, "Regarding logistics, since shipments must pass through China, causing delays or requiring transport by ship instead of plane, we will establish long-term alternatives."
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