Korea earmarks $248 billion to support global trade under Trump
Published: 20 Jan. 2025, 18:18
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- SHIN HA-NEE
- [email protected]
![Representatives from government agencies and financial institutions of the Fin-eX, a discussion group for export financing support measures under the Ministry of Economy and Finance's One-Stop Export and Order Support Group, pose for a photo following a meeting in western Seoul on Monday. [MINISTRY OF ECONOMY AND FINANCE]](https://koreajoongangdaily.joins.com/data/photo/2025/01/20/a86d6626-79d1-44d9-bb9e-efcf0b6e9069.jpg)
Representatives from government agencies and financial institutions of the Fin-eX, a discussion group for export financing support measures under the Ministry of Economy and Finance's One-Stop Export and Order Support Group, pose for a photo following a meeting in western Seoul on Monday. [MINISTRY OF ECONOMY AND FINANCE]
Korea is providing a record 360 trillion won ($248 billion) in financing for exporters in an effort to stabilize the global trade environment as U.S. President-elect Donald Trump comes to power again.
The Export-Import Bank of Korea has earmarked 50 trillion won in financial backing for advanced technology sectors such as semiconductors and EV batteries over the next five years. The Korea Trade Insurance Corporation will provide trade insurance services worth 100 trillion won with lower interest rates and higher guarantee limits for small and midsize exporters in cooperation with seven major banks in the country.
The government also increased its budget for foreign exchange risk insurance from its previous 1.2 trillion won to 1.4 trillion won, and also expanded spending for trade support initiatives, such as overseas industry conventions and trade delegations, from 2.1 trillion won to 2.9 trillion won.
The Trump administration has proposed a blanket tariff on all imports to the United States to boost domestic manufacturing, fueling concerns for Korea's export-driven economy. A universal tariff of 10 to 20 percent on all imports could reduce Korea’s exports to the United States by 9.3 percent to 13.1 percent, resulting in a decline in the country’s nominal value added by 7.9 trillion won to 10.6 trillion won, according to a report by the Korea Institute for Industrial Economics & Trade published on Dec. 26.
The support measures were discussed during a meeting of the Fin-eX, a multiagency consultation group on export finance launched last October, in western Seoul on Monday. The plan, which was previously announced on Jan. 2 as part of the 2025 Economic Policy Directions, ups export financing support from the previous year’s 355 trillion won.
“With the rise in external uncertainties driven by the launch of the new U.S. administration, there are concerns over its potential implications on Korean companies’ export operations,” said Kim Dong-joon, vice chief of the Finance Ministry’s One-Stop Export and Order Support Group, who chaired the Monday meeting.
“We will bolster the monitoring of industries facing higher risks, such as chips and EV batteries, while also continuously developing financial support measures with the Fin-eX to help high-potential industries — including defense, nuclear plants and shipbuilding —expand exports by leveraging Korea-U.S. ties.”
BY SHIN HA-NEE [[email protected]]
with the Korea JoongAng Daily
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