According to Yonhap News,

The government unveiled a package of support measures Wednesday for domestic industries most impacted by the recent U.S. tariff impositions that include more than 2 trillion won (US$1.5 billion) in policy financing, the finance ministry said.

The measures were presented during a meeting chaired by Finance Minister Choi Sang-mok, aimed at reviewing ways to minimize the impact on local industries amid a rapidly changing trade environment, the ministry added.

To mitigate potential damage, the government will prioritize policy financing for key export sectors, such as automobile, steel, semiconductor and battery, which are most vulnerable to trade frictions.

Special policy finance programs will be introduced to support affected industries, with a particular focus on the automotive and parts sectors, the ministry said.

The state-run Export-Import Bank of Korea and the Industrial Bank of Korea will also launch emergency loan programs to help businesses cope with the ongoing crisis, according to officials.

For companies facing liquidity shortages, the government will introduce a "crisis response special guarantee" program and expand emergency management stabilization funds for small and medium-sized enterprises (SMEs) impacted by tariff-related challenges.

Other potential measures under consideration include expanding subsidies for electric vehicles and providing additional support for consumption tax adjustments on passenger cars.

Last week, U.S. President Donald Trump announced a 25 percent reciprocal tariff on South Korean goods, which is scheduled to take effect Wednesday (U.S. time), as part of a broader protectionist agenda aimed at reducing trade deficits and boosting domestic manufacturing.

Additionally, the U.S. is reportedly preparing to impose tariffs on semiconductor and pharmaceutical imports in the near future, following the recent imposition of duties on steel, aluminum and auto imports.

In response, the South Korean government will accelerate efforts to diversify export destinations by organizing more export promotion events.

The government will inject 60 billion won in policy funds to support the overseas operations of SMEs and increase the export voucher limit for logistics cost from 30 million won to 40 million won, the ministry said.

Other support measures include introducing low-interest financing programs for companies targeting promising markets, expanding low-interest market entry funds and increasing special guarantees for businesses seeking to secure new export channels.



khj@yna.co.kr

Source Text

Copyrights Yonhap News. All Rights Reserved.
Reprint or redistribution without permission is prohibited.

Source: Yonhap News (April 9, 2024)