Busan Metropolitan City has launched emergency measures in response to growing global trade uncertainty triggered by the rapidly evolving situation in the Middle East. The move comes amid concerns that regional exporters could face mounting operational burdens from volatile raw material prices, maritime logistics disruptions, and a potentially prolonged period of high exchange rates.
On the 4th, Mayor Park Hyung-jun convened an emergency review meeting on the Middle East situation at City Hall to assess the impact on the regional economy and discuss countermeasures. The city stated it will not treat the matter as a short-term variable but will respond with a preemptive management system that accounts for the possibility of a prolonged crisis.
The city will immediately activate an emergency response team headed by the Deputy Mayor for Administrative Affairs and establish a joint public-private response system with relevant agencies. It plans to swiftly assess the status of companies operating in the Middle East and those expected to be affected, while strengthening complaint reporting and consultation functions by product category to minimize initial shocks.
Financial support will also be significantly expanded. The city will provide a total of 350 billion won in policy funds, including "Global Risk Response Special Funds," targeting small and medium-sized enterprises and small business owners expected to face difficulties due to Middle East conflict risks. The plan aims to preemptively inject funds to ease liquidity pressures from high exchange rates and rising raw material prices, preventing any contraction in export-import activities.
Support measures for exporters will also be reinforced. A standing crisis response trade task force will provide 2.2 billion won in support, including export-import vouchers, export insurance premiums, credit guarantee fees, and overseas logistics costs. In particular, the budget for overseas logistics cost support will be expanded from 180 million won to 450 million won to enhance responsiveness to sudden variables such as surging freight rates.
Measures to stabilize people's livelihoods will proceed in parallel. The city will operate a "Price Stability Emergency Task Force" to constantly monitor price trends by industry and product category. To stabilize personal service fees, the city will expand the number of "Good Price Businesses" from 863 to 3,000 locations and broaden the scope to include accommodations. Additionally, loans of up to 100 million won per Good Price Business with annual interest rate support of 2.5% will be linked to reduce the burden of consumer prices on ordinary citizens.
Regional economic organizations attended the meeting, including the Bank of Korea Busan Branch, Busan Bank, Export-Import Bank of Korea, Korea International Trade Association Busan Regional Headquarters, Korea Trade-Investment Promotion Agency, Korea Trade Insurance Corporation Busan Regional Headquarters, Korea Credit Guarantee Fund Busan-Gyeongnam Business Headquarters, Busan Economic Promotion Agency, and Busan Credit Guarantee Foundation. Participants expressed agreement on the response direction and pledged close cooperation.
"We will further solidify our cooperative system with related agencies and continue to supplement our countermeasures in line with changing circumstances," Mayor Park said. "We will swiftly deploy policy funds through the crisis response situation room and strengthen logistics consultations with the Ministry of Oceans and Fisheries and Busan Port Authority."