The Ministry of SMEs and Startups said on the 16th it will push an emergency logistics voucher program to support corporations hit by rising logistics costs for export small and midsize enterprises as tensions in the Middle East escalate amid conflict between the United States and Iran.
Recently, shipping disruptions at key Middle East logistics hubs such as the Red Sea and the Strait of Hormuz have sent ocean freight rates soaring and increased ancillary expenses such as war risk surcharges. The Ministry of SMEs and Startups (MSS) urgently allocated vouchers totaling 10.5 billion won to stabilize the management of affected small and midsize corporations.
First, it will create a Middle East–focused category and expand the support limit. It will urgently support up to 10.5 million won (70% government subsidy rate) for small and midsize corporations that export to, or have signed contracts with, the Middle East.
Reflecting on-the-ground feedback, it also added to the existing support categories: ▲ war risk surcharge (WRS) ▲ logistics return expense due to port closures ▲ locally incurred demurrage ▲ detour transportation costs to alternative destinations. The policy was designed so that corporations selected in this year's first-round export voucher program can receive additional support once Middle East export performance is verified.
A "fast-track review system" that issues vouchers within three days will also be introduced. To provide timely support to corporations affected by disputes, application documents and procedures have been streamlined. Applicant corporations can receive a decision on support within three days after applying with only export performance and proof of damage.
Applications will be accepted online from the 20th on the "export voucher dedicated platform." For detailed inquiries, guidance is available from the export voucher civil service center.
Lee Soon-bae, director general for global growth policy at the Ministry of SMEs and Startups (MSS), said, "We will do our best to provide swift and practical support so that export small and midsize corporations facing difficulties due to the Middle East situation can ease their logistics cost burden and continue to develop overseas markets."