The Industrial Bank of Korea is providing 'tariff specialized consulting' to help export small and medium-sized enterprises that are concerned about damage from the U.S. Trump administration's tariff policies. The goal is to support SMEs in overcoming complex risks they face and enhancing their competitiveness through one-on-one customized consulting.
According to the financial sector on the 28th, the Industrial Bank of Korea will launch the 'small and medium-sized enterprises tariff specialized consulting' project at the end of June. An official from the Industrial Bank of Korea noted, "We will conduct consulting to address various tariff risks of SMEs in response to the second term of Trump's tariff policy."
The target for consulting is about 300 export small and medium-sized enterprises. The Industrial Bank of Korea plans to offer in-depth consulting focused on tariffs after signing contracts with specialized consulting firms. While the Industrial Bank of Korea has its own 'IBK Consulting Center,' the main consulting areas are management, taxation, accounting, and ESG (environmental, social, and governance), so they decided to select specialized firms. The bank intends to provide both remote consultations via phone and email, as well as face-to-face consultations for quick problem resolution. This will support everything from providing basic information related to tariffs to document reviews and customized strategy presentations.
Concerns among export small and medium-sized enterprises are increasing due to an uncertain trade environment. Earlier, the U.S. government applied a 25% tariff on imported steel and aluminum starting from March 12. This was followed by the imposition of a 25% tariff on automobiles and auto parts and a basic reciprocal tariff of 10% starting in April. The grace period for the reciprocal tariffs, which are applied differentially to various countries, will expire on July 9. As tariff costs rise, the sales margins for SMEs decline, leading to reduced revenues. Furthermore, there is a risk of liquidity crises due to requests from ordering companies to lower delivery prices or cancel orders.
The Industrial Bank of Korea is also strengthening financial support for small and medium-sized enterprises in crisis. As of the 26th of this year, the bank has increased its loans to small and medium-sized enterprises by approximately 9.7 trillion won. This is 80% of its target for the year (12 trillion won). This contrasts with the five major commercial banks, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup, which have shut the door on small and medium-sized enterprise loans citing risk management. While the commercial banks increased small and medium-sized enterprise loans by 3 to 5 trillion won each month last year, this year the increase has dropped to around 1 trillion won.