With the continued spread of COVID-19 and the severe impact on the global economy, here in Korea, the domestic supply of personal hygiene and healthcare products is dwindling (e.g, face masks and hand sanitizers). Both exporters and importers in Korea have been significantly impacted.
In response, the Korean government has tightened the regulation on the supply and demand of healthcare products. Further, the government is in the midst of developing policies to support exporters and importers, mainly through tax relief measures, and the government is expected to announce additional support programs.
As an introduction and overview of the Korean government’s tax and trade-related relief measures, we discuss below: (i) the newly implemented “Emergency Measure” designed to help businesses cope with the COVID-19 pandemic; (ii) major tax support policies, particularly in relation to tariffs; and (iii) the current situation concerning major trade partners of Korea.
1. The Emergency Measure
2. Tax Support
(1) Emergency implementation of tariff quota for imported face masks and MB filters
(2) Special tax support for businesses impacted by COVID-19
(3) Reduction of tariffs on imports by air of COVID-19-related materials
3. South Korea’s Major Trading Partners – Current Situation
(1) The United States (“U.S.”)
(2) The European Union (“EU”)
(3) ASEAN Member States
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