Seoul: The government announced plans to deploy an additional 28.6 trillion won (US$20.5 billion) in financial aid to support domestic export companies grappling with U.S. tariff measures. This initiative aims to provide emergency liquidity and assistance to those affected by heightened global competition, particularly in high-tech industries.
According to Yonhap News Agency, the Ministry of Economy and Finance stated that the funding will be secured through an extra budget recently passed and other fiscal channels. The primary objective is to implement tailored financial support swiftly for sectors adversely affected by U.S. tariffs.
The support package includes 16.3 trillion won in emergency relief specifically for companies directly impacted by the tariffs. This component will provide low-interest loans and ongoing consulting services, helping businesses navigate the current economic challenges.
Additionally, 7.4 trillion won will be allocated to help exporters explore new overseas markets. Of this amount, 4.1 trillion won will be directed towards offering targeted low-interest loans, with 1 trillion won earmarked for export diversification financing and 100 billion won for new market entry funds.
Furthermore, 4.9 trillion won will be dedicated to facility investments in high-tech industries and the restructuring of key industrial sectors. This reflects South Korea's efforts to mitigate the impact of the 25 percent "reciprocal" tariffs imposed by the U.S. on South Korean goods, including automobiles, steel, and aluminum.
The finance ministry highlighted that relevant ministries will actively monitor the implementation of these measures, conduct industry briefings, and collaborate with related agencies to promote the initiatives. Authorities also intend to collect feedback from export companies and consider additional support measures if necessary.