The government announced on the 3rd a major tariff support plan to assist small and medium-sized enterprises (SMEs) facing challenges in exports to the U.S. due to reciprocal tariffs. The measures include significantly expanding policy funds, establishing a logistics voucher system, and promoting medium- to long-term support such as fostering a K-Beauty cluster to enhance export competitiveness and diversify overseas markets.
The Ministry of SMEs and Startups unveiled the "Support Plan for SMEs Affected by U.S. Reciprocal Tariffs" during the Economic Ministers’ Meeting and the Ministerial Meeting on Strengthening Industrial Competitiveness. This follows the July Korea-U.S. tariff agreement, which led to the U.S. imposing 15% reciprocal tariffs, increasing the burden on domestic SMEs exporting to the U.S.
A survey conducted by the Ministry and the Korea Federation of SMEs from the 11th to the 20th of last month, targeting 609 SMEs exporting to the U.S., revealed that 63.1% responded that the tariffs had a negative impact. The SMEs cited "logistics support (73.2%)," "policy funds (38.8%)," and "tariff information provision (23.5%)" as needed policies.
Based on this, the Ministry will operate three key policies: addressing on-site difficulties, financial support, and logistics. First, in collaboration with the Korea Customs Service, it will expand tariff information provision and in-depth consultations, consolidating and rapidly disseminating tariff-related policies through 15 export support centers, the Korea Federation of SMEs, and industry associations. Specialized consulting, such as calculating tariff item content values for derivative products affected by steel and aluminum tariffs, will also be expanded.
Second, policy funds and guarantees totaling 4.6 trillion Korean won will be swiftly provided to tariff-affected companies in steel and aluminum sectors. The export diversification special guarantee quota will also increase from 300 billion to 500 billion Korean won. Third, export vouchers worth 420 billion Korean won will support tariff consultations, and a new "K-Export Logistics Voucher" worth 10.5 billion Korean won will be introduced next year to provide ongoing support for international transportation and overseas inland logistics costs.
Beyond immediate tariff support, the government announced plans to enhance the export competitiveness of SMEs, ventures, and startups. This includes establishing a model to nurture domestic strong SMEs into export-oriented companies and forming an interagency council to foster a 'K-Beauty Integrated Cluster.' Additionally, programs to address overseas export regulations for regionally specialized items—such as bio in Chungchek, shipping in Busan, and textiles/eyewear in Daegu—will be introduced. Intellectual property (IP) protection will also be strengthened to detect and remove counterfeit K-brand products overseas.
Policies to cultivate future export items and diversify overseas markets will also be pursued. Programs to identify excellent companies in high-growth sectors like K-Beauty, fashion, and food, and establish tailored strategies for each item, will be prepared by the second half of the year. To support market diversification, specialized demand in untapped markets will be identified. An example is the K-Security Equipment briefing session held in June in collaboration with the Embassy of Paraguay and the National Police Agency.
Meanwhile, the government plans to expand support for joint overseas entry by large corporations and SMEs in preparation for global supply chain restructuring due to U.S. tariffs and unify legal grounds to systematically strengthen SME export competitiveness. Han Seong-sook, Minister of SMEs and Startups, stated, "We will spare no policy support to minimize the negative impact of reciprocal tariffs on exports."
Source: https://www.chosun.com/english/industry-en/2025/09/03/KFQO7EYAONDDJC6FBIPCQSNWSQ/