SEOUL (Reuters) – South Korea pledged on Monday a report quantity of financing assist for exporters to mitigate any destructive impression from adjustments in U.S. commerce insurance policies as Donald Trump was poised to be sworn in for his second presidency.
The federal government plans to offer 360 trillion gained ($247.74 billion) value of coverage financing to exporting firms via state-run banks and establishments this yr, in keeping with a press release launched by the finance ministry.
“There are issues that exterior uncertainty can be heightened below the incoming U.S. administration and adversely have an effect on exports,” the ministry mentioned.
The ministry mentioned it could additionally increase insurance coverage assist to protect towards international trade volatility to 1.4 trillion gained this yr, from 1.2 trillion gained final yr, and spending on authorities initiatives, similar to commerce festivals and delegations, to 2.9 trillion gained from 2.1 trillion gained.
Sectors significantly below menace of recent U.S. insurance policies are semiconductors and rechargeable batteries, the ministry mentioned, whereas defence, nuclear power and shipbuilding sectors are seen as extra promising due to room for cooperation with the US.
U.S. President-elect Trump, who takes workplace in a while Monday, has pledged to impose stiff tariffs on main buying and selling companions, similar to Mexico, Canada and China, that are additionally anticipated to have an effect on South Korean firms working factories in these nations.
Economists say there are worries that the Trump administration will introduce commerce insurance policies towards South Korea too, after Asia’s fourth-largest economic system earned a record-high surplus of $55.7 billion in commerce with the U.S. in 2024, up 25.4% from 2023.
The Korea Worldwide Commerce Affiliation, South Korea’s greatest group of exporting firms, initiatives export development to sluggish to 1.8% this yr. Final yr, South Korea’s exports rose 8.1% to a report excessive of $683.7 billion, as gross sales to the U.S. rose 10.4%.
($1 = 1,453.1500 gained)
