Seoul: The government announced on Wednesday its plan to inject an additional 28.6 trillion won (US$20.5 billion) in emergency liquidity and financial assistance to bolster domestic export companies impacted by U.S. tariff measures. This move aims to alleviate the challenges faced by South Korean companies due to tariffs imposed by the United States and the increasing global competition in high-tech industries, as highlighted by the Ministry of Economy and Finance in a press release.
According to Yonhap News Agency, the ministry intends to secure the necessary funding through a recently approved extra budget and other fiscal channels, aiming to promptly deliver tailored financial aid to the affected sectors. The newly announced support package includes 16.3 trillion won in emergency relief specifically for companies directly affected by the tariffs. This relief will consist of low-interest loans and ongoing consulting services to assist businesses in navigating the crisis.
Furthermore, 7.4 trillion won will be designated for exporters seeking new overseas markets. Of this amount, 4.1 trillion won will be allocated for targeted low-interest loans, including 1 trillion won for export diversification financing and 100 billion won for new market entry funds. An additional 4.9 trillion won will focus on facility investments in high-tech industries and the restructuring of key industrial sectors.
South Korea has been working to mitigate the impact of the U.S. administration's new duties, which include 25 percent "reciprocal" tariffs on South Korea, as well as sector-specific tariffs on automobiles, steel, and aluminum. Acting Finance Minister Kim Beom-suk emphasized during a meeting with economy-related ministers that the government has proactively established an export response plan since the new U.S. administration took office. He assured that all available resources will continue to be mobilized to minimize the impact of these tariffs.
The finance ministry also noted that relevant ministries will closely monitor the implementation of the measures, hold briefings for industry stakeholders, and conduct joint promotions with related agencies. Authorities will continue to collect feedback from export companies and consider additional support measures as necessary.