SMEs Facing High Exchange Rate Burden Granted Up to 1-Year Extension on Customs Duty Payments

Small and medium-sized enterprises (SMEs) that import raw and subsidiary materials and are facing increased operational burdens due to high exchange rates will be granted an extension of up to one year for customs duty payments.
The Korea Customs Service announced today (July 8) that it will provide emergency tax support to SMEs whose import costs for raw and subsidiary materials account for at least 20 percent of their total revenue.
This measure is intended to alleviate the financial strain on companies that have seen their raw material import costs rise as the won-dollar exchange rate has climbed by more than 110 won compared to the end of last year.
Through an application process, companies can extend the payment deadline for customs duties and other taxes due at the time of import by up to one year or pay in installments up to six times.
Businesses can also receive customized tax support, such as the expedited payment of export duty refunds and the deferral of collection actions for tax arrears.
Previously, the Korea Customs Service has been providing tax support since March to companies directly or indirectly affected by the conflict in the Middle East.
An official from the Korea Customs Service stated, "We will continue to provide timely tax support to companies experiencing temporary management crises due to changes in trade environments or disasters, actively supporting them in securing financial liquidity."
(Photo: Courtesy of Korea Customs Service, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.