Korea SMEs and Startups Agency (KOSME) is preparing measures to minimize damage to small and medium-sized enterprises exporting primarily to the Middle East, including the UAE and Saudi Arabia. The agency plans to actively support solutions to liquidity problems caused by logistics disruptions and rising costs.
KOSME announced it held an "Emergency Response Meeting for Export SMEs Regarding the Middle East Situation" at its Mokdong headquarters conference room in Seoul on the 11th. The meeting was organized to assess damages and difficulties facing SMEs exporting products to the Middle East region and to develop response measures across export, logistics, and funding sectors.
Approximately 20 participants attended the meeting, including KOSME Chairman Kang Seok-jin, representatives from 12 SMEs exporting to the Middle East, and officials from logistics and related organizations such as Samsung SDS. Key agenda items included reviewing export and logistics trends related to the Middle East situation, sharing updates on local conditions and response status from Global Business Centers (GBC) in Dubai and Riyadh, explaining response plans for various Middle East scenarios, and hearing corporate difficulties and policy suggestions.
Participants unanimously noted that business uncertainty is expanding due to recent sharp increases in maritime and air freight rates, shipping delays, and local buyers postponing orders and delaying payments. They also proposed expanding logistics cost support, providing emergency business stabilization funds, and delivering timely local information.
Company P, which exports machinery products to over 50 countries worldwide, stated, "With recent difficulties using Middle East shipping routes, freight costs that were around $1,300 per TEU have risen to over $3,500 with surcharges added," and urged "expanded logistics cost support is desperately needed for stable export shipping."
Company A, which exports processed chocolate products to the Middle East, said, "Due to Middle East instability and restrictions on using the Strait of Hormuz, we are concerned about shipping disruptions for goods scheduled to ship in March and April," and requested "the latest information on local Middle East conditions and logistics situations, along with logistics information such as alternative shipping routes."
KOSME will strengthen customized support by damage type, including logistics disruptions and liquidity difficulties, in preparation for a potentially prolonged Middle East situation. The agency also plans to expand logistics information response capabilities, including local government policies and shipping company trends, utilizing its Global Business Centers (GBC).
Chairman Kang Seok-jin emphasized, "With expanding uncertainty in the Middle East region, there are concerns about damage to export SMEs," adding, "We will quickly identify on-site difficulties and mobilize all available policy measures including logistics and finance to mount a full-scale response to minimize damage to SMEs."
