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Busan City Launches “Emergency Export Response Plan 2.0” to Overcome Trade Challenges through Public-Private Cooperation

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it will implement the “Busan Emergency Export Response Plan 2.0”, ahead of the U.S. Trump administration’s planned implementation of reciprocal tariffs on April 2.

On April 1, Mayor Park visited  IDEUNTECH Co., Ltd., a leading local automotive parts manufacturer and exporter in Busan, to inspect production facilities and express the city’s strong commitment to supporting small and medium-sized exporters amid intensifying global trade tensions.

Busan’s new export support initiative was developed to help SMEs, which account for 97% of Busan's exporters, respond flexibly to shifting trade policies such as tariffs and maintain global competitiveness.

Prior to this visit, on March 27, the city held a roundtable with officials from the Ministry of Economy and Finance and representatives of key export industries such as steel, shipbuilding, and automotive parts to identify challenges and tailor support strategies.

Based on the insights gathered, the city upgraded its previous response plan (Emergency Export Response Plan 1.0, launched in January) to the more comprehensive 2.0 version, incorporating reinforced and expanded measures.

Key Features of Busan Emergency Export Response Plan 2.0

The plan is composed of 5 strategic areas and 10 core actions:

1. Emergency Response to Tariff Impacts

• ●Provide up to KRW 800 million in emergency operating funds per company (KRW 900 million for hometown businesses), with a total budget of KRW 100 billion

• ●Implement local tax deferrals, postponement of audits, and suspension of collection and seizure procedures for companies expected to suffer tariff-related losses

2. Expansion of Trade Finance Support

• ●Increase support for export insurance premiums up to KRW 2 million per company, expanding beneficiaries from 4,000 to 5,000 SMEs with annual exports under USD 30 million

3. Support for Overseas Logistics Costs

• ●Double the number of companies receiving international logistics support from 150 to 300

• ●Expand U.S. joint logistics centers from 3 to 5 locations, improving product delivery to buyers and strengthening access to North American markets

• ●Add a new “customs response” category to the export voucher program

4. Support for Exploring New Export Markets

• ●Target six emerging markets identified by KOTRA in the Global South by supporting participation in international exhibitions and trade missions

• ●Expand subsidies for obtaining international certifications and intellectual property rights from China and ASEAN to all global regions (up to KRW 6 million per company)

5. Establishment of a Crisis Response System

• ●Activate a collaborative network among key export agencies including Busan Economic Promotion Agency, KOTRA, Korea Trade Insurance Corporation, and Busan Chamber of Commerce

• ●Launch the “Customs Response 119” one-stop consultation center staffed with resident customs consultants for expert, real-time support

The plan includes short-term support such as emergency loans and logistics assistance for immediate relief from new tariffs (e.g., on automobiles), and long-term strategies to strengthen the local future vehicle industry ecosystem, including support for core parts R&D and innovation-driven growth.

During the visit, IDEUNTECH CEO Oh Rin-tae, who also serves as Chair of the Busan Auto Parts Cooperative, commented:

“In these uncertain and difficult trade conditions, it’s reassuring to know that the city is standing with local companies. We ask for continued, tangible support.”

Mayor Park responded:

“In this era of global trade crises and national economic security threats, Busan City will stand by our local companies. By enhancing the initial Emergency Export Response Plan 1.0 and quickly launching Plan 2.0, we will ensure that critical support is delivered at the right time without missing the golden opportunity to act.”