Korea’s Small and Medium Enterprises to Benefit from Extended Logistics Support Program

The Ministry of Small and Medium Enterprises and Startups (SMEs) and the Korea SMEs and Startups Agency (KOSME), led by Chairman Kang Seok-jin, have announced an extension for the application period to participate in the logistics support program for SMEs engaged in online exports. This extension will last until the 21st of this month.

This program is designed to support small export enterprises currently involved or planning to engage in online exporting by helping to reduce logistics costs. It particularly emphasizes the use of fulfillment services, which are significantly adopted by small businesses, alongside logistics centers operated by the Busan Port Authority in key overseas locations.

The fulfillment services involve partial financial support (up to 70%, capped at 30 million won) for logistics service costs necessary for companies to fulfill customer orders. This includes storage, shipping, picking, packing, and last-mile delivery through private logistics companies.

Through this initiative, businesses utilizing the logistics centers designated by KOSME, as well as those employing fulfillment services from global platforms like Amazon, Shopee, Lazada, and Rakuten, will receive post-expense reimbursements.

This year, KOSME has designated a broad network of logistics points, including 49 domestic sites and 56 locations across 16 overseas countries, totaling about 100 logistical bases.

Furthermore, for selected companies that wish to store products at logistics centers operated by the Busan Port Authority overseas or require local delivery from these sites, a part of the associated costs will also be subsidized (up to 70%, capped at 30 million won).

Kang Seok-jin, Chairman of KOSME, stated that “the global uncertainties due to conflicts in the Middle East, high exchange rates, and inflation continue to create instability for SMEs. We will keep building a support system to assist companies entering the e-commerce marketplace and resolve logistics challenges for small export enterprises to stabilize global supply chains.”