Seoul: The South Korean financial regulator announced plans on Wednesday to establish a new fund aimed at enhancing industrial competitiveness in light of potential impacts from the policy measures of Donald Trump's administration. The Financial Services Commission (FSC) is working with various ministries to develop this fund under the Korea Development Bank (KDB) to support companies facing increased competition due to policy changes anticipated under the Trump government, as stated by FSC chief Kim Byoung-hwan.
According to Yonhap News Agency, Kim emphasized the urgency of addressing concerns related to South Korea's industrial competitiveness given the new U.S. administration. "We will finalize and implement the supportive scheme at an early date," Kim stated during a press briefing in Seoul. The proposed scheme involves the government investing in companies through a special purpose company for initiatives such as launching new projects or building facilities.
Kim explained that such investments are anticipated to alleviate financial constraints for companies and offer more significant cost-saving benefits compared to low-interest loans. President Trump's anticipated policies, which include protectionist measures and a shift away from China, are expected to considerably affect South Korea's export-focused economy.