The Seoul Business Agency (SBA), under the leadership of CEO Kim Hyun-woo, has initiated the 2026 Middle East Logistics Support Fund, aiming to support South Korean SMEs facing export challenges due to recent disruptions in the Middle East.

The new program, effective from April 21, provides logistics cost subsidies up to 30 million KRW ($22,000) per company, covering 90% of logistics expenses incurred by exporters.

As the geopolitical climate in the Middle East continues to evolve, it has led to a sharp increase in shipping costs and significant operational delays.

Consequently, some companies have experienced deteriorating profitability, prompting them to temporarily halt or scale back their exports.

This shift has resulted in amplified uncertainties surrounding their export activities.

Designed to foster agility, the SBA's support framework simplifies the application process, allowing businesses to receive funds quickly.

Once submitted, companies will be notified of their application status within three business days.

Following approval, the subsidized funds will be disbursed within 14 days, ensuring timely assistance for those bearing the brunt of rising operational costs.

The funding mechanism operates on a post-expense reimbursement basis, with a cap of 30 million KRW (approximately $22,000) for each applicant.

Verification processes are in place to assess the legitimacy of submitted logistics expenses, ensuring that only valid claims meeting the program's criteria are funded.

Notably, this initiative exclusively supports logistics disruptions directly linked to geopolitical conditions, rather than fluctuations in global freight rates alone.

Responding to the reality that these disruptions often culminate in recurring logistical challenges, the program permits multiple applications from the same company, thereby enhancing the capacity of businesses to mitigate ongoing logistical hurdles.

Applications for the support fund can be submitted online through the SBA's official website, where extensive additional information is also available through formal announcements.

CEO Kim Hyun-woo emphasized the agency's commitment to providing practical, effective support that transcends one-time funding, aiming to bolster the resilience and ongoing export activities of South Korean enterprises amid increasingly complex international trade conditions.