Ministry of SMEs and Startups to subsidize logistics costs for online exporters, up to W30m

The Ministry of SMEs and Startups said Thursday it is accepting applications from companies wishing to participate in its online export logistics support project.

The application window runs from Thursday through Aug. 7. The project aims to ease the logistics cost burden on online exporters and strengthen their competitiveness by subsidizing fulfillment services and overseas warehouse use. It is the second round of the program, following an initial run in April.

Small and medium-sized enterprises that export — or plan to export — online are eligible. Companies using fulfillment services through private logistics providers, covering the full logistics chain including storage, packaging, dispatch, delivery and returns, can receive up to 70 percent of their costs covered, with a cap of 30 million won ($20,100) per company.

The ministry will also subsidize the use of overseas logistics centers operated by the Busan Port Authority. Companies that store products or use local delivery and other logistics services at overseas centers in Los Angeles, Rotterdam in the Netherlands, Barcelona in Spain, and East Java in Indonesia are also eligible for up to 70 percent cost coverage, subject to the same 30 million won ceiling.

The maximum subsidy varies based on each company's export performance in the previous year. Companies classified as strong exporters — those with $5 million or more in annual exports — can receive up to 30 million won, while growth-stage exporters ($1 million to under $5 million) are eligible for up to 25 million won. Promising exporters ($100,000 to under $1 million) can receive up to 20 million won, beginner exporters ($1,000 to under $100,000) up to 15 million won, and domestic-focused companies with under $1,000 in exports up to 10 million won.

The ministry is also running a separate logistics support program in partnership with Korea Post. Companies using postal logistics services such as EMS will receive a partial subsidy from the ministry, with Korea Post's Postal Service Bureau providing additional discounts.

The global logistics environment has become one of the biggest cost pressures facing small and medium-sized exporters. Heightened tensions in the Middle East have added to volatility in both sea and air freight rates, and a growing number of companies have seen profitability erode as logistics costs climb. Small businesses that have entered overseas e-commerce markets are particularly affected, as they typically lack the infrastructure to manage logistics in-house and rely heavily on professional services such as fulfillment — making the case for government support all the more pressing.

"The international logistics environment has deteriorated significantly due to the fallout from the war in the Middle East and other factors, placing a heavy logistics burden on online exporters," said Shim Jae-yun, the ministry's director general for global growth policy. "We hope this project will help small and medium-sized exporters overcome their difficulties and expand into a wider range of overseas markets."