South Korea launches 10.5 billion-won SME vouchers to ease Middle East shipping costs

South Korea’s Ministry of SMEs and Startups announced an emergency logistics voucher program to ease the higher shipping costs faced by export-oriented small and mid-sized enterprises (SMEs) as tensions in the Middle East disrupt major trade hubs such as the Red Sea and the Hormuz Strait.

The plan allocates a total budget of 10.5 billion won for the vouchers. Eligible SMEs exporting to the Middle East or with contracts in the region can receive up to 10.5 million won per company, with the government subsidizing 70% of the voucher value. The program adds Middle East–specific items, including war risk surcharges, costs from port closures, local demurrage charges, delays, and rerouting to alternative destinations.

Eligible firms are those exporting to or having signed contracts in the Middle East. For those already selected in the first batch of export vouchers this year, additional support can be provided if their Middle East export activity is verified.

The ministry is adopting a fast-track approach: vouchers can be issued within three days of application. Applicants will rely on export performance and damage documentation, with the process streamlined through a dedicated Export Voucher platform. Applications open on the 20th, and guidance is available from the Export Voucher Help Center.

Eun-seub Yi, Global Growth Policy Director at the Ministry, said the initiative aims to stabilize the finances of affected exporters and sustain their overseas market activity by reducing logistics costs during the disruption.

Why this matters beyond Korea: disruptions to Middle East logistics affect global supply chains, including U.S.-bound imports of Korean-made electronics, autos, and components. Higher freight rates and war-risk charges can feed into broader inflation and cost-of-coods for multinational buyers. By offering targeted relief to small exporters, Seoul hopes to protect jobs, maintain Korea’s role in key tech and manufacturing supply chains, and prevent ripple effects on global markets.

The image accompanying coverage shows containers stacked at Pyeongtaek Port in Gyeonggi Province, illustrating South Korea’s export activity and the kind of cargo that could be affected by shipping-cost shocks in the region. This measure reflects ongoing policy tools used by Seoul to support SMEs amid volatility in global shipping routes and to keep Korean exporters competitive in a fragile international environment.