Govt. to implement additional W28.6tr in policy financing for export firms
The government said Wednesday it will utilize an additional 28.6 trillion won ($20.5 billion) in emergency liquidity and financial assistance to support domestic export companies affected by US tariff measures.
"The imposition of tariffs by the United States and intensifying global competition in high-tech industries have heightened difficulties for South Korean companies," the Ministry of Economy and Finance said in a press release.
The ministry said it plans to secure the funding through a recently passed extra budget and other fiscal channels, with the goal of swiftly implementing tailored financial support for affected sectors.
The latest support package includes 16.3 trillion won in emergency relief for companies directly impacted by the tariffs, the ministry said.
This will encompass low-interest loans and ongoing consulting services to help affected businesses weather the crisis.
Additionally, 7.4 trillion won will be allocated to assist exporters exploring new overseas markets.
Of that, 4.1 trillion won will be used to offer targeted low-interest loans, including 1 trillion won for export diversification financing and 100 billion won for new market entry funds.
Another 4.9 trillion won will be dedicated to facility investments in high-tech industries and the restructuring of key industrial sectors, officials said
South Korea has been striving to lower the rates of US President Donald Trump's administration's new duties, including 25 percent "reciprocal" tariffs on South Korea, as well as sectoral tariffs that include 25 percent levies on automobiles, steel and aluminum.
"Since the launch of the new US administration, the government has proactively established an export response plan," acting Finance Minister Kim Beom-suk said during a meeting with economy-related ministers. "We will continue to mobilize all available resources to minimize the impact of tariffs."
The finance ministry said relevant ministries will closely monitor the implementation of the measures and hold briefings for industry stakeholders, as well as conduct joint promotions with related agencies.
Authorities said they will continue to gather feedback from export companies and consider additional support measures as needed. (Yonhap)
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