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Korean gov't increases support for export companies ahead of U.S. tariff deadline

Published: 18 May. 2025, 17:09

Container loading and unloading operations are underway at Incheon New Port in Incheon on May 16. [NEWS1]

The Korean government is ramping up its support for export companies with 50 days left until the U.S. deadline for country-specific tariff exemptions on July 8.

The Korea Trade-Investment Promotion Agency (Kotra) and the Ministry of Trade, Industry and Energy plan to expand the “Tariff Response Voucher Program” using funds from the recently confirmed supplementary budget on May 1, according to Kotra on Sunday.

The allocated budget totals 84.7 billion won ($60.4 million), enabling additional support for about 2,000 small- and medium-sized export companies.

The Tariff Response Voucher Program, launched last month, is an expansion of the existing export voucher system to help companies cope with the tariffs triggered by the Donald Trump administration.

The government subsidizes a portion of the costs for services such as damage analysis, response strategies, relocating production bases and discovering alternative markets under the program,

While the existing export vouchers mainly supported domestic services like shipping costs, the new program also covers consultations with overseas tariff and legal experts.

The range of eligible companies has also broadened. Previously limited to firms exporting directly to the United States, the program now includes domestic indirect exporters and intermediate goods suppliers affected directly or indirectly by U.S. tariffs.

“Export companies can now receive practical support from local U.S. customs law firms,” Kotra Vice President Kang Sang-yeop said. “The voucher can also be used for certifications or finding buyers for alternative markets, which will help companies proactively manage tariff risks.”

The ministry and Kotra had earlier selected 204 companies for the first round of support, allocating 9.3 billion won out of the 36.1 billion won base budget.

Export vehicles are lined up at the Pyeongtaek Port auto terminal in Pyeongtaek, Gyeonggi on April 29. [NEWS1]

Among those selected, automotive parts and machinery companies made up the largest group at 71 firms, or 34.8 percent, followed by cosmetics companies at 22, or 10.8 percent and materials companies at 19, or 9.3 percent.

A construction equipment manufacturer chosen in the first round said it plans to use the entire voucher for consulting on tariff response strategies.

An auto parts firm allocated more than half of its 120 million won voucher limit toward securing local production bases, devising strategies for tariffs on steel and aluminum derivatives and reducing docking fees charged by Chinese shipping companies.

Kotra will hold an online briefing on Tuesday to guide applicants through the program’s eligibility requirements, support details and necessary documents. The final selection of supported companies will be announced on June 19.

“Companies are facing growing difficulties due to ever-changing tariff policies,” Kotra President Kang Kyung-sung said. “We will promptly execute the expanded budget to actively help exporters overcome challenges in a timely manner.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY NOH YU-RIM [[email protected]]