Grievance Reporting Centers Established at 15 Export Support Centers
The Ministry of SMEs and Startups is promoting support measures for domestic companies in response to the tariff measures of the second Trump administration. It plans to actively respond to management difficulties by installing grievance reporting centers at 15 export support centers.
On the 5th, the Ministry of SMEs and Startups announced that Minister Oh Young-joo visited 'Yulchon,' an automobile parts manufacturing company in Siheung, Gyeonggi Province, to assess the impact on domestic export SMEs following the U.S. imposing a 25% tariff on Canada and Mexico, and to listen to the difficulties and suggestions of companies.
The Trump administration originally planned to impose a 25% tariff on Canada and Mexico starting February 4, but it was postponed for one month. The Ministry expects that small and medium-sized enterprises (SMEs) that have entered Canada and Mexico alongside large corporations, as well as SMEs exporting to the U.S. through Canada and Mexico, will feel a significant burden due to this tariff implementation.
Accordingly, since November last year, the Ministry has formed and operated a task force (TF) to respond to the second Trump administration, and on February 18, announced the 'SME and Venture Business Export Support Plan' to promote support measures for SMEs affected by the Trump administration's tariff actions.
First, to alleviate the management difficulties of companies affected by the tariff measures, grievance reporting centers have been established at 15 export support centers to receive damage reports and provide consultations related to the U.S. tariff measures. The Ministry also plans to support the rapid normalization of management through emergency management stabilization funds for companies experiencing management difficulties.
Next, to promptly support companies pursuing export market diversification in response to the U.S. tariff measures, a 'Policy Fund Fast Track' has been introduced. In the future, when operating export consortia and export vouchers, SMEs affected by the U.S. tariff measures will be given priority support to assist in discovering new buyers.
Additionally, to ease the management burden of SMEs that have established overseas subsidiaries, the Ministry will supply policy funds worth 60 billion KRW for the first time this year to overseas subsidiaries of domestic SMEs. For SMEs establishing overseas subsidiaries alongside large corporations or planning to relocate to other countries, a program providing subsidies of up to 1 billion KRW for up to three years will also be operated.
Minister Oh said, "We will promptly assess the difficulties faced by SMEs due to the U.S. tariff measures and actively promote policies such as rapid management normalization of tariff-affected companies and export market diversification. We also plan to request active cooperation from large corporations to minimize the damage to SMEs supplying to domestic large corporations operating overseas."
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