The Korea Customs Service (KCS) has introduced the Export PLUS+ (PLUS+) Strategy to enhance the export capabilities of Korea’s advanced and promising industries. This initiative responds to rapidly changing global trade environments, including anticipated tariff increases and intensified international competition in high-tech sectors. The strategy aims to support industries such as semiconductors, bio, aircraft maintenance, repair, and overhaul (MRO), and Arctic shipping routes. The announcement was made at Seoul Customs on February 5, 2024, with participation from leading companies including Samsung Electronics, SK Hynix, and Celltrion.
The policy impacts major exporters in Korea’s advanced sectors, particularly those utilizing the bonded processing export system. Approximately 95% of export value in key industries like semiconductors, shipbuilding, and bio relies on this system. The newly formed Export Support Teams, composed of customs officials and industry experts, will address field-specific challenges and facilitate regulatory reforms. These teams are organized into three groups focusing on semiconductors and bio, aircraft MRO, and Arctic shipping route development.
Implementation of the Export PLUS+ Strategy is scheduled for the first quarter of 2024, with regulatory amendments to follow. The strategy centers on four pillars: supporting new technologies and industries (Pioneer), reducing costs and tax burdens (Lower), improving speed and efficiency (Uplift), and expanding autonomous management (Self-Manage). Key changes include allowing bonded factory patents for research labs, simplifying MRO procedures, expanding comprehensive bonded zones, and streamlining customs processes for exporters.
Frequently asked questions include: What is the bonded processing export system? It allows manufacturers to use imported raw materials under deferred taxation for export production, significantly boosting competitiveness. How will the new strategy affect exporters? Exporters will benefit from faster customs procedures, reduced costs, and more flexible regulations, especially in high-tech sectors. The Export Support Teams will act as on-site problem solvers, ensuring ongoing regulatory innovation and industry collaboration.
The Export PLUS+ Strategy is a targeted response to global trade shifts and the need for enhanced competitiveness in Korea’s advanced industries. By combining regulatory innovation with dedicated support teams, the policy addresses practical challenges faced by exporters, particularly in semiconductors, bio, and MRO. The planned regulatory amendments and streamlined procedures are grounded in industry feedback and are expected to deliver tangible benefits such as faster customs clearance and reduced costs. This approach demonstrates a proactive stance by the Korea Customs Service in supporting Korea’s innovation-driven economy.