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Busan Metropolitan City Launches Comprehensive Support Measures to Ease Foreign Exchange Burden on Local Businesses, Including KRW 100 Billion in “Exchange Rate Relief Special Funds”

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Busan Metropolitan City (Mayor Park Heong-joon) announced today (27th) that it will begin implementing comprehensive emergency support measures to ease the management burden on local companies in sectors such as steel, metal, footwear, and fisheries that are struggling due to the recent spike in exchange rates.

The new support package is structured around three key areas: emergency liquidity support, tailored “pinpoint” support by industry, and measures to promote export-oriented business development.

A total of KRW 100 billion in new “Exchange Rate Relief Special Funds” will be established for small and medium-sized enterprises (SMEs) that can demonstrate direct damage from the high exchange rate.

Up to KRW 800 million per company (KRW 1 billion for designated prestigious local enterprises) will be provided, along with a 2 percent interest subsidy for three years, to help alleviate short-term liquidity crises caused by rapid fluctuations in exchange rates.

To apply, companies must obtain a recommendation letter from the Busan Economic Promotion Agency (Tel. 051-728-8046) and submit it to one of 14 commercial banks.

To ease the financial burden on exporting companies, trade finance support will also be expanded.

Starting in 2026, support for export insurance premiums will be increased to KRW 700 million, credit guarantee fee assistance will be raised to KRW 300 million, and the number of eligible categories for trade insurance and guarantee support within the export voucher program will be expanded from eight to nine.

Tailored support targeting industries most affected by rising exchange rates will be further strengthened.

For small and medium-sized footwear manufacturers, the city will provide support covering 90 percent of export logistics costs, up to KRW 2 million per company (maximum of 10 companies), to reduce overseas transportation expenses.

The city will also expand assistance enabling joint purchases of raw materials across industries, covering actual expenses such as customs clearance and transportation incurred during collective imports, thereby significantly reducing individual corporate burdens. Additionally, the “On-site FX Risk 119 Consulting Team” will be launched to provide foreign exchange risk education and on-site consulting services.

In addition, Busan Metropolitan City will strengthen support to help domestic-focused companies enter global e-commerce platforms (such as Amazon and Alibaba.com) and expand consulting programs that help domestic manufacturing firms convert to export-oriented operations, enabling them to benefit from exchange rate gains during periods of high foreign exchange rates.

The city is also reinforcing on-site communication efforts by visiting companies directly affected by the high exchange rate to listen closely to their challenges.

In particular, Mayor Park will visit GB Light Co., Ltd., a retroreflective film manufacturer located in Beombang-dong, Gangseo-gu, at 9:00 a.m. today to hear about issues such as rising raw material prices due to the strong dollar, increased import settlement burdens, and changes in global market conditions.

During the on-site meeting, company representatives are expected to explain immediate challenges—including rising cost pressures and a deteriorating export–import environment—and propose the need for swift and accessible financial support.

The city anticipates that these comprehensive support measures will serve as a substantial financial safety net for companies facing difficulties due to heightened exchange rate volatility, helping to safeguard the region’s industrial base and export competitiveness.

Mayor Park Heong-joon stated, “The strong dollar has become a direct and immediate burden on local businesses. I hope these comprehensive support measures will help companies endure this crisis and achieve renewed growth,” adding, “Busan Metropolitan City will continue to listen to voices from the field and promptly implement necessary support so that companies can operate with peace of mind and focus on their business.”