On Monday, the South Korean government announced plans to provide significant financial support to boost exports this year. This decision comes as global trade uncertainty is expected to rise with the start of US President-elect Donald Trump’s second term.
Trump’s policies, including potential tariffs on products from countries like Mexico, Canada, and China, are causing concerns for South Korea, which relies heavily on exports.
Kim Dong-joon, a senior official in the finance ministry, said that with the changes in US policies and other global factors, businesses in the export sector may face more challenges.
To help address these challenges, the government plans to offer a record amount of export financing, totaling 360 trillion won ($247 billion) in 2025. They will also increase the budget for exchange rate insurance from 1.2 trillion won to 1.4 trillion won and boost funding for trade fairs and delegations from 2.1 trillion won to 2.9 trillion won.
Meanwhile, Trade Minister Cheong In-kyo said exports are expected to slow down this month due to fewer business days caused by the Lunar New Year holiday. With major Asian trade partners on holiday, demand is lower, leading to a temporary export slowdown.