Korea deploys W28tr support to shield industries from US tariffs
The Korean government is accelerating its financial and diplomatic campaigns to curb the damage from US-led tariffs, launching a massive new policy funding amid tariff negotiations with the US to safeguard key industries from escalating trade barriers.
Acting Minister of Economy and Finance Kim Beom-seok revealed Wednesday an additional 28.6 trillion won ($20.6 billion) in policy financing, supported by a supplementary budget of 15.5 trillion won, as part of a broader strategy to bolster industries vulnerable to rising tariffs and trade barriers.
Kim vowed to mobilize all government resources to minimize the fallout from tariff hikes.
'To ensure rapid delivery of policy funds to the field, relevant government agencies will jointly conduct thorough oversight of execution status, and will support financial institutions with shields from potential risks to enable proactive funding when necessary,' he said during a ministerial meeting on economic affairs at the Seoul government complex.
The new financial package coincides with the launch of a three-day negotiation session between Korean officials and US representatives in Washington.
Seoul's primary goal remains to reduce or eliminate the 25 percent mutual tariffs imposed by the Donald Trump administration, which includes a 10 percent basic tariff plus additional industry-specific tariffs up to 15 percent, along with tariffs on steel, aluminum and cars imposed globally.
Wednesday's fiscal measures aim to use 16.3 trillion won to stabilize impacted companies, 1.7 trillion won too promote market diversification, and 4.9 trillion won to enhance industrial competitiveness via machinery investments.
Kim said that the government, in coordination with financial institutions, would ensure the rapid deployment of funds and implement measures to shield lenders from potential risks where necessary.
Support for core industries such as pharmaceuticals and semiconductors will be reinforced with preemptive tariff strategies and investments, including incentivizing returnees to Korea.
The government also aims to accelerate restructuring in the petrochemical and steel sectors, promising swift completion of consulting initiatives and sector-specific modernization plans to rekindle competitiveness.
In parallel, Seoul is intensifying diplomatic and trade negotiations with Washington. Led by Industry Minister Jang Sung-gil, Korea's delegation is engaging with US officials amid rising tensions over tariffs on steel, aluminum, autos and other products.
This meeting comes just 19 days after the first round of technical talks and is expected to be the last face-to-face negotiation before Korea's new government takes office following the June 3 presidential election.
Both sides are expected to discuss six key areas — balanced trade, non-tariff measures, economic security, digital trade, the country of origin issue and commercial considerations — in line with the agreements reached during a ministerial trade meeting in Jeju on May 16.
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