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Busan Metropolitan City Accelerates Support for Export Companies in the First Half of the Year by Expanding Speed and Scale

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Busan Metropolitan City, under Acting Mayor Kim Kyung-duk, announced that it will launch a concentrated support system in the first half of the year to assist local small and medium-sized export companies suffering from logistics disruptions and rising shipping costs caused by the prolonged Middle East conflict.

To rapidly ease the burden on export companies, the City plans to operate a “Field-Oriented Emergency Export Support System” centered on timely budget execution and expanded support programs, while swiftly promoting customized support measures that companies can directly experience in the field.

To this end, the City has allocated a supplementary budget to expand the SME Voucher Support Program for Export and Import Difficulties to KRW 890 million, the Overseas Logistics Cost Support Program to KRW 456 million, and the Overseas Exhibition Participation Support Program to KRW 1.284 billion.

Along with expanding the scale of support, the City will also improve support procedures.

Instead of the previous monthly application and review process, the City will switch to a system that accepts applications for the entire annual allocation at once so that companies can receive support more quickly.

According to the City’s monitoring of damage cases among local SME exporters following the Middle East conflict in March, logistics-related burdens, including shipping disruptions and increased freight costs, accounted for the largest share at 69.6 percent.

Other major difficulties reported included delayed payment collection at 17.4 percent and contract disruptions at 13 percent.

As nationwide reports of SME damage have also shown that transportation disruptions and rising logistics costs are the most serious challenges, the City plans to prioritize resolving logistics difficulties and respond proactively.

The City also plans to operate the Overseas Logistics Cost Support Program so that companies receiving benefits under the program may additionally apply for logistics cost support through the SME Voucher Support Program for Export and Import Difficulties for export cases not already covered by the logistics support program.

Through this approach, the City aims to strengthen the support system so that export companies can receive the maximum possible benefits beyond one-time assistance.

In addition, Busan Metropolitan City will fully launch the nation’s first Joint Purchase Support Program for Raw and Subsidiary Materials.

For local companies that import raw and subsidiary materials, manufacture finished products, and export them overseas, logistics costs pose a significant burden. The City plans to improve logistics efficiency through joint purchasing and support practical cost reductions for companies.

The program is scheduled to be fully implemented within May.

Meanwhile, Busan’s exports in March increased by 11.7 percent year-on-year and 23.2 percent month-on-month despite growing external uncertainties such as the Middle East conflict.

The City plans to mobilize all available measures to support the stable export activities of local companies amid continued uncertainty in external conditions.

Information on export company support policies and program applications can be found on the Busan Export Platform at https://trade.bepa.kr.

For further inquiries, companies may contact the Busan Economic Promotion Agency regarding vouchers at 051-600-1829 or the Busan Regional Headquarters of the Korea International Trade Association regarding logistics costs at 051-993-3301.

Acting Mayor Kim Kyung-duk of Busan Metropolitan City stated, “As external risks continue, the area in which local export companies are experiencing the greatest difficulty is logistics,” adding, “We will strengthen both the speed and extent of support simultaneously so that practical assistance that companies can truly experience in the field can be delivered swiftly.”