Government to provide record 255 trillion won in trade insurance this year

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Government to provide record 255 trillion won in trade insurance this year

Published: 25 Mar. 2024, 15:30

JIN EUN-SOO
[email protected]

Containers are piled up at Busan port on March 1. [YONHAP]

The Ministry of Trade, Industry and Energy said Monday that the government will provide a record 255 trillion won ($189.4 billion) in trade insurance this year to further drive export growth, which is showing a solid rebound this year.

The expanded financial support will help the country reach its exports target of $700 billion set for this year, according to the ministry.

"Despite prolonged monetary tightening, supply chain reshuffling due to U.S.-China tensions, geopolitical risks and major countries' elections, exports have shown a robust start this year," Industry Minister Ahn Duk-geun said during a meeting with business officials.

Korea's exports increased for the fifth consecutive month in February as outbound chip shipments maintained an upward trajectory, advancing 4.8 percent on-year to $52.4 billion.

"Due to the strong performance of major products in key markets, exports are set to maintain growth in March and rise for the sixth straight month," Ahn added.

The ministry said that 136 trillion won of the budget would be allocated to critical sectors, such as chips, batteries and ships. More specifically, 33 trillion won will be reserved for cars and secondary batteries and 50 trillion won for the IT sector.


An additional 7 trillion won will be spent on defense industries, while 15 trillion won will be allocated to the energy sector and 4 trillion won to nuclear power plants, it added.

A record 90 trillion won will be spent on small and midsized enterprises in Korea, which have been hit hard by prolonged high interest rates. The government will expand the number of companies receiving trade insurance from 280,000 last year to 350,000 this year.

It will also double the credit guarantee for small and midsized businesses.

"Private and public entities should join forces to roll out their full-fledged effort to bring forward the spring of our economy when exports, one of three main economic pillars, are showing a solid rebound," Ahn said.

BY JIN EUN-SOO, YONHAP [[email protected]]