The Middle East conflict is causing significant disruptions to the exports of small and medium enterprises (SMEs) in South Korea, with many companies reporting issues related to payment and delivery. A textiles company, for instance, has been unable to collect payments from buyers due to their goods being caught in transit and stuck at sea. Similarly, a company that had a contract to export ship parts has seen its schedule delayed completely after losing contact with buyers in Dubai.

According to the Ministry of SMEs and Startups, they have received a total of 146 reports of damage or difficulties faced by SMEs due to the Middle Eastern situation, of which 126 cases are directly related to the ongoing conflict. Out of these, 76 cases involve concrete evidence of damage or complications, while 50 cases reflect concerns about the long-term implications of the crisis. The most common issues reported include transportation delays, increased logistics costs, non-payment, and canceled or postponed contracts.

The affected companies predominantly export to other Middle Eastern countries, with 75 cases noted in that region excluding Iran and Israel, followed by 43 related to Iran and 29 to Israel. A variety of case studies illustrate the ramifications; for example, a company exporting automation equipment has faced delays leading to delayed payments and increased costs. Additionally, a cosmetics firm is experiencing a backlog in regulatory procedures in Israel, while its existing exports to nearby countries have all but ceased. Another machinery company is also delaying exports due to rising logistics costs and difficulties securing ships for transportation.