Oh Youngju, Minister of the Ministry of Small and Medium Enterprises and Startups, visited Yulchon, an automotive parts manufacturer located in Siheung, Gyeonggi Province, on the 5th to assess the impact of the United States' 25% tariff on Canada and Mexico on export corporations and to listen to the challenges faced by businesses.
Previously, the 25% tariff imposed by the Donald Trump administration on Canada and Mexico was set to take effect on Feb. 4 (local time) but was delayed for a month and is now in effect as of the 4th.
The Ministry of Small and Medium Enterprises and Startups anticipated the burden on small and medium enterprises due to changes in tariff policy and established the Trump 2nd-term response task force in November of last year. On Feb. 18, the ministry announced measures to support small and medium enterprises' exports.
To alleviate the management difficulties of affected corporations due to tariff measures, the ministry has established a hardship reporting center at 15 export support centers to accept reports and provide consultations. For corporations facing management difficulties, it supports normalization through emergency management stabilization funds.
To quickly assist corporations promoting diversification of export countries, a "policy fund fast track" has also been introduced. In the future, small and medium enterprises affected by tariff measures will be prioritized for support when operating export consortiums and export vouchers.
Starting this year, to lessen the burden on small and medium enterprises that have established corporations overseas, a policy fund of 60 billion won will also be provided. There are plans to operate a program that provides subsidies of up to 1 billion won for small and medium enterprises that establish overseas corporations or seek to transfer abroad in collaboration with large corporations for a maximum of three years.
Lee Heung-hae, chairman of Yulchon, emphasized that "government-level support, along with individual corporations' response measures to the Trump administration's tariff actions, is needed at this time."
Minister Oh said, "I will actively promote policies to help normalize the management of tariff-affected corporations and diversify export countries," adding that "to minimize the damage to small and medium enterprises supplying to large corporations entering overseas markets, I will request active cooperation from large corporations."