The Ministry of SMEs and Startups in South Korea has taken proactive measures to assist small and medium-sized enterprises (SMEs) that are struggling due to the escalating crisis in the Middle East. At a recent meeting held on June 6 in Yeongdeungpo, Seoul, officials announced the creation of an 'emergency logistics voucher' that increases logistics cost limits specifically for SMEs engaged in exports to the Middle East, in light of the transportation disruptions reported. This initiative aims to alleviate the financial burden these companies encounter as they navigate shipping challenges exacerbated by the regional instability.

Additionally, the Ministry is looking to implement a 'special loan maturity extension' within the month. This measure is particularly relevant for SMEs that rely on importing raw materials from the Middle East, as they are facing heightened import costs due to soaring exchange rates. The proposal will focus on companies that have a significant proportion of their costs tied to these imports, offering them extended grace periods on their loans to provide some financial relief as they manage through this turbulent period.

Recent data gathered by the Ministry indicates that out of 80 surveyed SMEs, 80% reported having either suffered losses or expressed concerns about potential impacts from the ongoing situation. Key issues reported include delays due to the closure of vital shipping routes and increased transport costs, with many companies also experiencing issues such as outstanding payments and disruptions to business trips. The government is committed to continuously monitoring the situation and engaging with impacted businesses to develop responsive and effective measures for support.