
South Korea on Monday announced its largest-ever financial support package: a 360 trillion won ($248.25 billion) plan to bolster exporters, with 50 trillion won dedicated to advanced strategic industries such as semiconductors and batteries, according to the Finance Ministry.
The package was unveiled during a meeting of the government’s export finance consultative body, Fin-eX, which convened to discuss responses to heightened global uncertainties, including those related to the new US administration. The meeting was attended by officials from the finance and industry ministries, as well as representatives from state-run financial agencies.
Among the measures discussed, the Export-Import Bank of Korea revealed a five-year strategy to inject 50 trillion won into cutting-edge strategic sectors. Korea Trade Insurance Corporation, or K-Sure, plans to work with seven major banks to provide 100 trillion won in trade insurance for small and medium-sized enterprises, offering lower interest rates and expanded guarantee limits. The Industrial Bank of Korea will offer preferential liquidity support for SMEs.
Additionally, the Finance Ministry is allocating 1.4 trillion won to currency fluctuation insurance and 2.9 trillion won to export support initiatives, such as overseas exhibitions and trade delegations, both of which have been increased from last year.
The ministry noted that, despite achieving a record export volume of $683.8 billion in 2024, a 8.2 percent increase on-year, Korea faces growing concerns over potential headwinds for corporate exports due to external uncertainties, including the shift in US leadership.
"The government will intensify on-site inspections of key sectors, such as semiconductors and secondary batteries, while continuing joint efforts with the consultative body to offer financial support for promising industries, including defense, nuclear power and shipbuilding, to bolster their export volumes through enhanced Korea-US cooperation," a ministry official said.
By Choi Ji-won (jwc@heraldcorp.com)