Amended trade response law takes effect, expanding eligibility for assistance

Export containers at a port in Busan [Yonhap]
Export containers at a port in Busan [Yonhap]

Companies harmed by foreign trade measures — including product-specific tariff surcharges and export controls — will now be eligible for government support such as loans, consulting and market-development assistance under a newly amended law.

The Ministry of Trade, Industry and Energy said the amended Act on Response to and Support for Changes in the Trade Environment took effect Thursday.

Under the previous law, the government could only support companies that had been negatively affected, or were at risk of being affected, by the implementation of trade treaties South Korea had concluded. The amended law expands eligibility to companies harmed, or at risk of being harmed, by trade and commerce measures taken by other countries under their own domestic laws.

Foreign trade measures covered under the expanded scope include universal and reciprocal tariffs, product-specific additional tariffs, export controls on strategic and dual-use goods, ESG-related trade regulations, and discriminatory fiscal and tax support measures that foreign governments use to promote their own strategic industries.

The government will also broaden its support for companies seeking to strengthen their competitiveness. On top of existing assistance such as loans and technology and management consulting, the amended law establishes a legal basis for market-development support programs.

The Korea SMEs and Startups Agency's Trade Environment Response Support Center will reflect these changes, building a one-stop comprehensive support system that guides companies through the application process and provides loans, consulting and market-development assistance.

According to the ministry, 603 companies cumulatively received 136.7 billion won ($103 million) in loans and consulting between 2008 and last year. The government said it plans to further expand support for businesses under the amended law.


oskymoon@heraldcorp.com