In response to the U.S. government’s imposition of tariffs on steel and aluminum imports, South Korea’s Ministry of SMEs and Startups (MSS) has unveiled a comprehensive support package to assist affected small and medium-sized enterprises (SMEs). Following a visit by MSS officials to GJ Aluminum Co., Ltd., where businesses voiced concerns over disrupted export contracts and rising raw material costs due to the 25% tariffs, the ministry announced three key support measures.
First, an emergency response team will be established, and 15 regional reporting centers will be activated to collect damage reports and provide consultations. Companies will receive guidance on specific products subject to U.S. tariffs along with relevant information and support. In March, MSS and the Korea Federation of SMEs (KBIZ) will conduct a joint survey of steel and aluminum SMEs exporting to the U.S. to assess their challenges and needs. Based on the findings, MSS will consider additional support measures, including tailored information provision, enhanced training on origin certification, and legal services.
Second, MSS will expedite financial assistance by recognizing “protectionist trade damage” as a qualifying reason for emergency management stabilization funds, making affected companies eligible for financial support. The application process for emergency management stabilization guarantees will also be streamlined.
Third, MSS will support export diversification efforts by allocating dedicated funding under the second round of the export voucher program in May to help companies develop new export strategies. SMEs seeking to enter alternative markets will benefit from a simplified evaluation process, including exemptions from priority assessments for policy funding and access to fast-track evaluations.
Minister OH Youngju stated, “With the implementation of tariff policies under the Trump administration’s second term, the uncertainties in the external environment faced by exporting SMEs are greater than ever.” She emphasized, “Together with KBIZ and relevant industry associations, we will actively support the normalization of operations for exporting SMEs affected by tariffs and assist in their efforts to diversify export markets through prompt support.”
