KOTRA to offer up to W150m to exporters hit by high exchange rates

The Ministry of Trade, Industry and Energy and Korea Trade-Investment Promotion Agency (KOTRA) are stepping up support for small and medium-sized exporters struggling with high exchange rates and tightening export controls in major trading partners. The initiative centers on easing the financial burden of currency volatility and providing specialized consulting to help companies navigate overseas trade regulations.

The ministry and KOTRA announced they will run the fourth round of the "2026 Emergency Support Voucher" program, backed by 5 billion won ($3.32 million), and will accept applications through July 21.

The fourth round focuses on companies hurt by high exchange rates and those facing export controls imposed by major economies. Firms that import raw materials for processing, or those with a large share of overseas payment obligations, face rising costs as the won weakens. Tightening export controls and supply chain regulations from the United States, China and other major economies are adding to the pressure, increasing trade risk for small and medium-sized enterprises.

To help exporters bearing greater currency risk, the program will revamp how it supports exchange rate fluctuation insurance. A new advance payment option has been introduced so that companies can settle costs for such insurance — which hedges against currency swings — even when the policy's end date falls after the voucher agreement date, allowing firms to act on exchange rate risk before it materializes.

The ceiling on trade insurance and guarantee services will also be raised. Previously, companies could use up to 10 million won through the voucher; the new round doubles that limit to 20 million won. The increase is designed to help companies manage cash flow as exchange rate volatility and financing costs rise simultaneously.

Support for export control compliance will be strengthened as well. A new consulting menu will be introduced to analyze how trade regulations and strategic goods controls in major countries affect individual Korean companies and to recommend tailored response strategies.

Assistance with obtaining Compliance Program certification and upgrading internal control systems is also included. The aim is to help companies that handle export-controlled items or technology identify risks in advance and reduce the likelihood of sanctions violations during transactions.

Voucher amounts range from 20 million won to a maximum of 150 million won, depending on the recipient company's industry and sales volume. The government subsidy rate is 70 percent for small and medium-sized enterprises and 50 percent for mid-sized companies.

The support period runs for 12 months. To address urgent needs, costs incurred from February this year are eligible for retroactive reimbursement, with support extending through January 2027. Applications are accepted through the Export Support Infrastructure Utilization Program website.

Through the program, KOTRA plans to provide services tailored to each company's specific challenges — covering exchange rates, export controls, trade insurance and overseas regulatory compliance. The agency said the focus goes beyond simple cost subsidies, aiming to build a framework that helps companies adapt to a shifting trade environment.

KOTRA President Kang Gyeong-seong said exporters are currently facing a compound crisis of high exchange rates and global export controls. "Through this fourth round of the emergency support voucher program, we will provide precision support to small and mid-sized companies struggling with trade difficulties, and operate field-oriented specialized services so that we can overcome macro-level trade barriers together with our exporters and sustain export momentum," he said.