On June 24, the Ministry of Trade, Industry and Energy held the second public-private joint export expansion meeting, chaired by Minister Kim Jeong-kwan. During the meeting, the ministry announced a comprehensive support strategy for overseas certification for export companies, measures to support entry into the halal market for consumer goods, and plans to establish a combined export platform for distribution and K-consumer goods.
According to the Korea Customs Service, exports from June 1 to 20 reached $61.99 billion, a 60.4% increase from the previous year. The surge was largely driven by a 188.4% increase in semiconductor exports, which totaled $25.5 billion. Cumulatively, exports for the year reached $456.45 billion, marking a 45.6% rise compared to the same period last year.
However, concerns remain regarding the heavy reliance on semiconductor exports. In response, the government is implementing support measures to increase exports of K-consumer goods, leveraging the popularity of the Korean Wave (Hallyu).
To alleviate the burden of overseas certification for export companies, which is often seen as a significant non-tariff barrier for SMEs, the government plans to expand the number of overseas test and certification types available domestically from 212 to 500 by 2028. This initiative aims to reduce costs and time by allowing companies to obtain certifications without having to seek out foreign certification bodies.
The scope of export voucher support will also be broadened. Previously excluded costs for prototype production and long-term certification processes exceeding one year will now be eligible for voucher support. Additionally, the reimbursement rate for failed certification attempts will increase from 50% to 70%, easing the financial burden on companies.
The government will enhance its information provision system by launching an AI-based portal for overseas certification and technical regulations. This portal will offer integrated information on certification procedures, application forms, certification body guidance, and cost support programs. Consulting services, where experts assist companies from product development to certification acquisition, will be expanded to 2,000 firms by 2027. The government also plans to strengthen cooperation with relevant agencies to address unreasonable certification systems imposed by foreign regulatory authorities and is pushing for the enactment of a law to support and respond to trade technical barriers.
Support for entering the halal market will also be intensified, as the consumer market for halal products is expanding beyond food to include cosmetics, pharmaceuticals, and daily necessities. The Korea International Trade Association aims to double the market share of K-consumer goods in the halal sector from 1% to 2% by 2028.
To achieve this, the government will assist domestic certification bodies in expanding mutual recognition agreements with Middle Eastern countries such as Saudi Arabia and the United Arab Emirates. The range of products will also be broadened from food to include cosmetics and daily necessities. A halal consulting service will be established on the trade association's consultation platform, along with low-interest loans from a trade promotion fund worth 10 billion won. Local bases in Southeast Asia and the Middle East will also be utilized.
Distribution platforms and consumer goods SMEs will collaborate for joint market entry. By 2030, the government aims to nurture ten 'national representative K-direct purchase platforms' specialized in K-consumer goods. Additionally, five promising direct purchase platforms will be selected to analyze export items and target regions, providing logistical and marketing support as a package. K-consumer goods confirmed to have demand online will be linked to overseas offline distribution networks.
Minister Kim Jeong-kwan stated, "To achieve our goal of becoming a robust top-five export nation despite external uncertainties, it is essential that all parties share in the success of 'everyone's exports,' not just certain companies or products. We will work together with the private sector to provide comprehensive support so that K-consumer goods SMEs can overcome barriers to overseas certification and expand globally alongside distribution platforms."
* This article has been translated by AI.
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