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Busan Economy Rides Out Waves of Uncertainty… Public-Private Joint Inspection Meeting Held Amid Middle East Crisis

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Busan Metropolitan City, under Acting Mayor Kim Kyung-duk, announced that it will hold the “Public-Private Joint Inspection Meeting on Responses to the Prolonged Middle East Conflict” today (May 18) at 4:00 p.m. in the City Hall Grand Conference Room to effectively respond to economic uncertainty caused by the prolonged conflict in the Middle East.

Around 30 representatives from related organizations, including the Busan Regional Office of SMEs and Startups, Busan Chamber of Commerce and Industry, the Busan Headquarters of the Bank of Korea, BNK Busan Bank, and the Busan Machinery Industry Cooperative, are expected to attend the meeting alongside Acting Mayor Kim Kyung-duk.

Busan Metropolitan City will closely inspect the progress of key projects to ensure that response measures announced during the 54th Emergency Economic Response Meeting for stabilizing livelihoods and revitalizing the local economy are tangibly felt in the field.

First, the “Fuel Cost Subsidy Program” for farmers and fishers suffering from high oil prices and the “Safe Operation Support Program for Freight Trucks and Village Buses” will begin accepting applications this month.

In addition, the second round of high oil price damage relief payments for 70 percent of the population will become available for application and payment starting today (May 18), which is expected to help ease the burden on citizens and stimulate local consumption.

For small and medium-sized enterprises struggling with high exchange rates and rising raw material prices, the city has established a cooperative framework with major financial institutions to swiftly supply policy financing totaling KRW 2.633 trillion, the largest amount ever, while also shortening screening periods to accelerate financial support.

At the same time, Busan Metropolitan City plans to expedite support for export-import companies and local industries facing increased burdens from transportation disruptions and rising logistics costs.

The number of companies eligible for overseas logistics cost support will be expanded from 60 to 150, while the number of companies eligible for export-import difficulty vouchers will increase from 100 to 300.

To address concerns over a downturn in the regional aviation and tourism industries caused by surging fuel surcharges, the city will launch the “Air Travel Market Promotion” initiative. It will also strengthen lodging promotions targeting domestic tourists and long-stay tourism content aimed at visitors from neighboring countries.

In addition, industry-specific customized support programs will proceed without disruption, including the early establishment of a joint stockpiling system for textile and fashion materials, support for raw material purchases and logistics costs in the machinery parts industry, and temporary packaging material support for exported seafood products.

During the meeting, the city will also discuss support measures for the local construction industry, which has been suffering from worsening liquidity due to the prolonged construction market downturn and economic instability stemming from the Middle East crisis.

In particular, the city plans to announce measures to include the construction industry, previously excluded from policy financing support, among the eligible sectors for such support.

Participating organizations agreed that as difficulties in the field continue to intensify due to the prolonged Middle East crisis, they will maintain a close emergency response system with the city and mobilize all available resources to minimize damage to regional industries.

Acting Mayor Kim Kyung-duk stated, “The aftermath of the Middle East conflict is raising concerns over a complex economic crisis as instability in energy supply combines with disruptions in the global supply chain.”

He added, “Alongside the thorough implementation of the emergency economic measures announced on April 15, we will swiftly execute the budget secured through the second supplementary budget to ensure that citizens and businesses receive the support they need in a timely manner.”

He further emphasized, “We will continue to closely monitor developments and reflect even the smallest voices from the field in our policies, maintaining steady and unwavering management of the situation so that citizens can focus on economic activities with confidence.”