South Korea's Bold Move to Support Exporters

In an ambitious effort to strengthen its export-driven economy amidst global trade uncertainties, South Korea has unveiled a comprehensive trade finance plan worth 360 trillion won. This initiative is designed to sustain the country's export growth trend, especially in light of potential policy changes with the upcoming second Trump administration in the United States.

Strategic Financial Support for Exporters

The government's plan includes the introduction of a "Special Program for Mega Orders," which will allocate 95 trillion won over five years from 2024 to 2028. This program, initially planned for 85 trillion won, has been expanded by 10 trillion won to further bolster the export sector. Additionally, the trade finance scale has been increased by 5 trillion won from the previous year, demonstrating the government's commitment to maintaining export momentum.

Preparing for Global Trade Shifts

With the anticipation of policy shifts under the second Trump administration, known for its protectionist trade policies, South Korea is proactively developing scenario-based action plans to mitigate potential risks. The government is also focusing on diversifying its export portfolio to reduce dependence on major markets like the U.S. and China, which currently account for over half of South Korea's total exports.

Enhancing Export Resilience

To further support exporters, the government will expand the support scale for exchange rate fluctuation insurance by 200 billion won to 1.4 trillion won. The maximum limit per company for this insurance will be increased to 150% until June this year, offering additional stability against currency volatility. The supply chain stabilization program will also continue, aiming to secure high-risk economic security items.