South Korea announces $3.25 bln support package for SMEs hit by U.S. tariffs

South Korea has rolled out a set of support measures for small and medium-sized enterprises (SMEs) that are expected to be negatively impacted by the U.S. tariffs, the government announced on Wednesday.

The measures include 4.6 trillion won ($3.25 billion) in financing support, subsidies to alleviate logistics costs, and other policies designed to help SMEs expand their export markets.

While SMEs accounted for 17% of South Korea's total exports in the first quarter, 81% of these companies reported vulnerability to the 25% tariffs introduced by the Trump administration in early April, though these tariffs were suspended for 90 days.

Earlier this month, South Korea approved an additional government budget of 13.8 trillion won, which includes funding for tariff-related responses, as the country faces challenges with weak domestic demand and the potential impact of U.S. tariffs.