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The South Korean government has announced an unprecedented 360 trillion won (€240 billion) financial support plan for its export companies. The reason for this decision was external risks, in particular the policies of the Donald Trump administration, which has begun its second presidential term in the United States.
Record performance and future challenges
“Last year, South Korea’s exports reached a record $683.8 billion, up 8.2% from 2023,” Kim Dong-joon, a spokesman for the Ministry of Finance, said, as quoted by France Presse.
However, according to the official, new external challenges, such as changes in US trade policy, could affect export dynamics.
Focus on strategic industries
According to the plan, KRW 50 trillion (EUR 33.5 billion) will be channelled through the Import-Export Bank of South Korea to support strategic sectors such as semiconductors, batteries and shipbuilding, which have recently been facing difficulties.
In addition, the government will support promising industries, including:
- Defence industry
- Nuclear energy
- Shipbuilding
“We intend to use the partnership with the US to develop these sectors,” Kim added.
Additional measures
The plan also provides for:
- organising international exhibitions and trade missions;
- expanding guarantees against currency risks.
Risks from Trump’s trade policy
Donald Trump, who officially took office on Monday, has already announced his intention to impose tariffs on key trading partners, including Canada, Mexico and China.
Seoul fears that US trade policy could also affect South Korea, which had a record trade surplus with the US in 2023, at $44 billion.
The South Korean government hopes that the new support package will help companies adapt to global challenges and strengthen their positions in global markets.
