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Gov't to implement new trade law expanding support for companies affected by trade agreements

Published: 31 Dec. 2024, 09:24 Updated: 31 Dec. 2024, 12:37

Shipping containers at a port in the southeastern city of Busan. [YONHAP]

Korea will implement a new trade rule this week focusing on offering broader support for companies impacted by free trade agreements (FTAs) and other trade pacts, the Industry Ministry said Tuesday.

The Act on Addressing Changes in Trade Environment, an upgraded version of the Act on Trade Adjustment Assistance, will take effect Wednesday to provide more comprehensive support to companies affected by trade deals, according to the Ministry of Trade, Industry and Energy.

Under the new law, the government will support companies impacted not only by FTAs but also by other types of trade agreements, including the Indo-Pacific Economic Framework and the Digital Economy Partnership Agreement.

The rule also provides support to companies impacted by changes in the trade of raw materials, intermediate goods and final products, moving beyond the previous regulation, which limited assistance to businesses directly affected by increased imports of specific products under FTAs.

The government will also offer support to companies that experience a drop of more than 5 percent in their sales or production, lowering the threshold from the previous 10 percent.

It will further aim to help enhance the competitiveness of technology and management in such companies instead of offering one-off financial support, the ministry said.

"The government will continue to support companies to help them proactively address changes in the global business environment," the ministry added.

Yonhap