South Korea extends trade aid to companies hurt by foreign tariffs, export controls and carbon charges

Korean companies hurt by another country's tariffs can now apply for state aid. An amendment to the Act on Responding to Changes in the Trade Environment took effect Thursday, the Ministry of Trade and Industry said; until now the law covered only damage from trade agreements Seoul itself had signed.

A ministry notice names four kinds of foreign measure that qualify. They are tariffs above the most-favoured-nation or free trade agreement rate, though not anti-dumping, countervailing or safeguard duties; export controls, including rules that reach products made in third countries; carbon charges and supply-chain due diligence mandates on imports; and subsidies or tax credits that favour local production of electric vehicles, batteries, renewables, semiconductors or critical minerals.

Help finding new buyers now joins the existing loans and consulting. From 2008 to 2025, 603 companies received 136.7bn won in loans and consulting under the law and its predecessor.