South Korea on Monday pledged a record amount of financial aid to exporters to cushion any negative impact from changes in US trade policies, as Donald Trump was set to be sworn in for his second presidential term.
According to a statement issued by the Finance Ministry, the government plans to provide policy financing worth 360 trillion won, or $247.74 billion, to exporting companies through state-owned banks and institutions this year.
“There are concerns that external uncertainty will increase under the incoming US administration and exports will be adversely impacted,” the ministry said.
The ministry said it would increase insurance support to protect against foreign exchange fluctuations from $827 million last year to $966 million this year and increase spending on government projects such as trade fairs and delegations from $1.45 billion to $2 billion.
The ministry said sectors particularly at risk from the new US policies are semiconductors and rechargeable batteries, while the defence, nuclear energy and shipbuilding sectors are considered more promising due to the scope for cooperation with the United States.
US President-elect Trump, who will take office on Monday, has promised to take tough measures Tariff Major trading partners such as Mexico, Canada and China are also expected to hit South Korean companies operating factories in those countries.
Economists say there are concerns the Trump administration will also introduce trade policies against South Korea, as Asia’s fourth-largest economy racked up a record-high surplus of $55.7 billion in trade with the US in 2024, up 25.4% from 2023. Is more.
The Korea International Trade Association, South Korea’s largest group of exporting companies, expects export growth to slow to 1.8% this year. Last year, South Korea’s export Sales rose 8.1% to a record high of $683.7 billion, while US sales rose 10.4%.
