Tariff Response 119 FAQ Part 5: Q&A on Government Support Programs
Comprehensive Guide to 2025 Government Support Programs for Tariff-Affected Companies
In response to the management crisis facing Korean exporters from high U.S. tariff impositions, the Korean government in 2025 has put together the largest-ever support package for tariff-affected companies. With a total budget exceeding KRW 500 billion, the package involves five agencies: KOTRA, the Korea Trade Insurance Corporation, the Export-Import Bank of Korea, the Korea SMEs and Startups Agency, and the Ministry of Trade, Industry and Energy. Tariff Response 119 FAQ Part 5 organizes the 18 most frequently asked questions by corporate managers by type of support program.
To make effective use of support programs, companies must first identify which type of tariff damage they are suffering. The optimal support program varies depending on the damage type — direct damage from U.S.-bound exports, indirect damage from supply chain disruption, or FX and liquidity pressure. Separate support tracks are available for companies diversifying into emerging markets including Bangladesh.
5
Support Agencies
Government and public institutions
₩500B+
Total Budget
2025 package
₩20B
Export Vouchers
Emergency allocation
₩2T
Trade Insurance Limit
50% expanded
₩50B
Market Diversification
New market development
₩300B
Special Finance
KExim & commercial banks
50%
FX Risk Subsidy
Government-funded fees
18
FAQ Items
Operational Q&A guide
KOTRA Support Programs (Q1–Q6)
KOTRA operates emergency export vouchers, overseas buyer matching, market diversification support, and Tariff Response 119 advisory services for tariff-affected companies. Applications can be made in one stop through kotra.or.kr or Tariff Response 119 (1600-7119).
KOTRA Support Programs for Tariff-Affected Companies (2025)
Emerging-market buyer discovery and business trips
₩50M/company
Quarterly recruitment
Tariff Response 119 Advisory
All companies
Customs consultant and legal advisory, strategy consulting
Free
1600-7119, always open
Overseas Exhibition Support
Tariff-affected manufacturers
Exhibition participation and logistics costs
₩30M/company
Rolling announcements
BD Market Entry Support
Companies targeting Bangladesh
KOTRA Dhaka Trade Office one-stop assistance
₩20M/company
Apply at Dhaka Trade Office
Online Export Transition
Consumer goods companies capable of B2C exports
Amazon and Alibaba onboarding support
₩30M/company
Rolling basis
The Bangladesh Market Entry Support is a newly established track in 2025, providing one-stop support through KOTRA's Dhaka Trade Office to help companies suffering U.S. export losses use Bangladesh as a new export and production hub. The program includes local buyer matching, company incorporation consulting, and factory site exploration programs.
Trade Insurance and Financial Support (Q7–Q12)
01
Q7. What are the details and application process for the Korea Trade Insurance Corporation limit expansion?
A: The Korea Trade Insurance Corporation is expanding export credit guarantee limits by 50% over previous levels for tariff-affected companies. Priority is given to companies where U.S.-bound exports account for 20% or more of total exports, and applications are processed within 7 business days. Applications can be submitted online at K-sure (ksure.or.kr) or at any of the 15 regional offices nationwide. Once the guarantee limit is expanded, access to commercial bank loans and trade finance becomes easier.
02
Q8. What are the specific terms for Export-Import Bank of Korea special financing?
A: The Export-Import Bank of Korea provides export financing at a special rate 0.5 percentage points below the base rate to tariff-affected small and mid-sized companies. Both working capital (up to ₩5B, extendable 1-year maturity) and facility investment (up to ₩10B, 3–5 year long-term) are covered. The total special support for 2025 is ₩300B, accepted on a first-come, first-served basis by quarter. Applications can be submitted directly to the KExim Corporate Finance Department (02-6776-5000) or online.
03
Q9. What FX risk management support is available?
A: The Ministry of Trade, Industry and Energy and Industrial Bank of Korea jointly fund 50% of FX risk management fees for SMEs. The subsidy covers up to ₩10M per year in fees for FX hedging products (forwards, options). Similar support for companies settling in Bangladeshi taka (BDT), subject to high FX volatility, is under expanded review.
04
Q10. What are the conditions for emergency loans to cover tariff payments?
A: To ease temporary cash pressure from U.S. tariff impositions, short-term loans (6 months to 1 year) at 3% or below per annum are provided in partnership with commercial banks. Companies submitting U.S. customs duty payment receipts as collateral can receive up to ₩2B immediately. Emergency business stabilization funds from KOSME (1357) for SMEs (₩100M to ₩500M, 2.5% per annum) can also be used in parallel.
05
Q11. What benefits come with obtaining the tariff-damaged company certificate?
A: Once a "Tariff-Damaged SME Certificate" is issued by the Ministry of Industry or a local government, companies receive priority screening, simplified review, and higher limit benefits from each support agency. The certificate is issued within 5 business days based solely on documented evidence of U.S. export performance over the past year and tariff burden. The certificate is valid for 1 year and may be renewed.
06
Q12. How is SME R&D support linked to tariff response?
A: For companies whose market transition is unavoidable due to tariff damage, KOSME and the Korea Institute for Advancement of Technology prioritize product value-added R&D support. Up to ₩500M is available for upgrading the functionality of existing export items or developing new materials. Localization product development tailored to the Bangladesh market — such as enhanced heat tolerance and Islamic standard certification — is also eligible.
Market Diversification Support (Q13–Q18)
Alternative Emerging Markets to the U.S.
Bangladesh170M domestic market
EUFTA duty-free utilization
ASEANRCEP intra-regional accumulation
Middle EastSurging infrastructure demand
Market-Specific Dedicated Support
BangladeshDhaka Trade Office tailored
EUKGCCI and KOTRA Europe
ASEANSoutheast Asia cluster
Middle East3 Gulf trade offices
Bangladesh is emerging as the top emerging market for market diversification by companies suffering U.S. export losses in 2025. It offers a triple advantage: a vast domestic market of 170 million people, a low-tariff manufacturing hub for U.S. and EU exports (LDC preference), and low labor costs ($113/month minimum wage). KOTRA's Dhaka Trade Office operates a dedicated "BD Entry Fast Track" for tariff-affected companies, cutting the preparation period from 6 months to 3 months.
Key Market Diversification Support Programs Comparison
Program
Target Market
Support Details
Ceiling
Managing Agency
BD Entry Fast Track
Bangladesh
Buyer matching, company incorporation, factory site
₩20M
KOTRA Dhaka
Emerging Market Exploration Team
ASEAN and South Asia
Export consultation participation
₩15M
KOTRA HQ
EU Export Voucher
EU 27 countries
CE certification and marketing
₩50M
KOTRA Europe
Middle East Infrastructure Export
GCC 6 countries
Project discovery and contracting
₩30M
KOTRA Middle East
Online Global Mall
Worldwide B2C
Global e-commerce onboarding
₩30M
KOTRA Digital
Assess Damage
Classify tariff damage type (direct, indirect, liquidity pressure)
→↓
Apply for 119 Advisory
Call 1600-7119 to request tailored support program guidance
→↓
Obtain Tariff-Damaged Certificate
Get Ministry of Industry certificate, qualify for priority screening
→↓
Apply for Support Programs
Apply online or in person at the relevant agency, submit documents
→↓
Execute Market Diversification
Implement new-market entry roadmap for Bangladesh, EU, and ASEAN
Priority Support Package for SMEs
KOTRA Voucher₩100M (marketing)
Trade Insurance Limit50% expanded
KOSME Fund₩500M (2.5% p.a.)
R&D Support₩500M (value-added)
Support Package for Mid- and Large-Sized Companies