Ministry of SMEs and Startups Listens to On-site Opinions from Plastic Injection Molding SMEs Affected by Middle East Conflict

Reflecting Rising Production Costs in Delivery Prices
Swift Support Including Emergency Management Stabilization Funds and Logistics Vouchers

The Ministry of SMEs and Startups announced on April 10 that it visited Shingwang M&P, a plastic injection molding specialist located in Bucheon-si, Gyeonggi-do, to listen to the difficulties faced by the industry due to the prolonged Middle East war and to inspect the on-site response situation.

This visit was arranged to directly hear the voices from the field and seek practical policy support measures, as small and medium-sized plastic injection companies—which are key to the production of daily necessities and the manufacturing supply chain—are facing a dual challenge of unstable raw material supply and increased price volatility caused by the prolonged Middle East war.

Minister Han Sung-sook of the Ministry of SMEs and Startups is giving a greeting speech on the 10th at the 'On-site Meeting for Overcoming the Middle East War Crisis for Small and Medium Enterprises' in Bucheon, Gyeonggi Province. Ministry of SMEs and Startups

To overcome the crisis originating from the Middle East, the Ministry plans to focus its policy capabilities on a two-track strategy centered on rapid recovery support and proactive structural improvement. First, for swift recovery support, the ministry will strengthen the supply price linkage system so that increased costs can be reflected in delivery prices. In addition, the ministry intends to promptly implement policy tools such as emergency management stabilization funds and emergency logistics vouchers to help alleviate the management burden on companies.

Furthermore, by supporting smart factories, the ministry aims to enhance process efficiency, reduce defect rates, and ease cost burdens, thereby securing manufacturing competitiveness that is resilient to external shocks. It will also provide support for business transformation to help companies respond proactively to changing environments.

During the meeting, participants discussed not only the difficulties in procuring raw materials, but also concerns about deteriorating profitability resulting from raw material cost increases not being immediately reflected in delivery prices. Hansung-sook, Minister of SMEs and Startups, emphasized that plastic injection SMEs are a core foundation supporting Korea's manufacturing supply chain, stating, "As the burden on the field is increasing due to the prolonged Middle East war, we will immediately reflect the suggestions made in our policies and spare no effort to help companies turn crisis into opportunity."

Meanwhile, the Ministry of SMEs and Startups has been operating an emergency response system, including a reporting center with the participation of associations, groups, and regional SME and startup offices, since the outbreak of the war. The ministry plans to continue strengthening policy support to establish a more stable and fair supply chain structure, using this on-site visit as an opportunity.

This content was produced with the assistance of AI translation services.