South Korea to aid war-hit businesses with emergency funds

April 17 (Asia Today) -- South Korea will provide 462.2 billion won ($308 million) in emergency support for small businesses and exporters affected by the prolonged Middle East war, the government said Thursday.

Han Seong-sook, minister of SMEs and Startups, visited South Gyeongsang Province to inspect local business conditions and pledged swift policy support for small businesses, exporters and young entrepreneurs.

Han first toured a "glocal" commercial district in Tongyeong, where officials highlighted a local revitalization model that has helped boost sales in the area. The ministry said it plans to expand support for local entrepreneurs and foreign tourism infrastructure beginning in 2026.

Han then visited the Korea SMEs and Startups Agency in Jinju and emphasized special extensions of policy loan maturities and expanded emergency financing. The ministry is pushing to disburse more than 90% of the supplementary budget for logistics support by June to help exporters cope with rising shipping costs.

At Gyeongsang National University, Han discussed expanding the government's "Startup for All" project with aspiring young entrepreneurs before heading to K-Tech, a defense exporter, for the final stop of the trip.

Companies at the meeting cited soaring raw material costs and higher logistics expenses caused by shipping delays as major difficulties. Han said it could take considerable time for logistics to normalize and for Middle East energy facilities to be fully restored.

"This is a critical moment for a closely woven support safety net to prepare for the fallout from the war," Han said, pledging to relay companies' concerns through an inter-ministerial emergency economic response system and to mobilize all available policy tools.

The ministry said the emergency support is part of a broader 1.69 trillion won ($1.13 billion) supplementary budget approved this month, with 462.2 billion won ($308 million) earmarked to minimize damage to export-oriented small and medium-sized firms from the Middle East conflict.

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260417010005540

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This story was originally published April 17, 2026 at 4:00 PM.