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Park Heong-joon Convenes Emergency Inspection Meeting to Address Middle East Situation: “Amid Global Uncertainty, We Must Check the Safety Net of the Regional Economy”

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it held an Emergency Inspection Meeting today (March 4) at 09:20 a.m. in the small conference room on the 12th floor of City Hall in order to respond proactively to the rapidly changing situation in the Middle East.

Mayor Park Heong-joon attended the meeting along with representatives from the business community and related institutions, where participants shared updates regarding developments related to the Middle East situation.

Participating institutions included the Busan Chamber of Commerce and Industry, the Bank of Korea Busan Branch, Busan Bank, the Export-Import Bank of Korea, the Busan Regional Headquarters of the Korea International Trade Association, the Korea Trade-Investment Promotion Agency, the Busan Regional Headquarters of the Korea Trade Insurance Corporation, Busan Main Customs, the Busan-Gyeongnam Business Division of the Korea Credit Guarantee Fund, the Busan Regional Office of SMEs and Startups, the Busan Shipbuilding & Marine Equipment Industrial Cooperative, Busan Economic Promotion Agency, Busan Credit Guarantee Foundation, Busan Techno Park, and Busan Development Institute.

This Emergency Inspection Meeting was organized to review changes in the global trade environment resulting from growing uncertainty in the development of the Middle East situation and to discuss response measures aimed at minimizing damage to local companies.

Chaired by Mayor Park Heong-joon, the meeting proceeded in the following order: the outlook for the regional economy and Busan Metropolitan City’s response plan regarding the Middle East situation, response plans from related institutions, and an open discussion for opinions and consultation.

Busan Metropolitan City plans to comprehensively review response measures across key areas—including policy financing, support for export companies, and price stabilization—in order to address external uncertainties such as the Middle East situation, and to implement these measures swiftly through a public-private cooperation system.

Through these measures, the city intends to secure stability across the regional economy and industries while supporting the economic activities of businesses and citizens.

First, an emergency response team will be formed under the leadership of the Vice Mayor for Administrative Affairs, and a public-private joint response system will be established in cooperation with 12 related institutions. Through this system, the city will strengthen efforts to identify affected or potentially affected companies and those operating in the Middle East, develop response measures including the deployment of emergency support funds, and provide reporting and consultation support regarding damage by industry and product category.

In addition, policy financing totaling 350 billion won—including the “Special Fund for Responding to Global Risks”—will be provided to small and medium-sized enterprises and small business owners expected to be affected by risks related to the Middle East conflict. This measure aims to mitigate financial shocks and support stable export and import activities.

As concerns among regional exporting companies grow, tailored export support policies will also be strengthened. A standing trade response task group for crisis response will be operated, and support totaling 2.2 billion won will be provided, including export-import vouchers, export insurance premiums, export credit guarantee fees, and overseas logistics costs.

In particular, support for overseas logistics costs will be expanded from the existing 180 million won to 450 million won, enabling more companies to maintain stable operations in overseas markets.

To prevent damage to citizens’ livelihoods should the situation become prolonged, an Emergency Task Force for Price Stabilization will be activated to continuously monitor price trends by sector and product category.

To stabilize personal service charges, the number of Good Price Businesses will be expanded from the current 863 to 3,000, and the program will also diversify into sectors such as lodging services.

Beginning this year, Good Price Businesses will also receive strengthened support including policy financing—such as loans of up to 100 million won and interest support of 2.5 percent per year—as well as promotional assistance.

Participating institutions expressed agreement with the city’s response direction and pledged to cooperate closely, based on each institution’s role, to overcome the current unstable economic situation.

Mayor Park Heong-joon stated, “Given the fluid nature of the situation in the Middle East, even small variables could significantly shake the market,” adding, “Through this emergency inspection meeting, we will further strengthen our cooperative framework and continue to supplement our response measures in line with changes in the situation.”

He further emphasized, “Centered on the Middle East Situation Crisis Response Situation Room, we will maintain close communication with related institutions and rapidly deploy policy financing during this period of high exchange rates. We will also strengthen logistics consultations with related organizations such as the Ministry of Oceans and Fisheries and the Busan Port Authority (BPA).”