Hanjin Shipping's container terminal at the Busan New Port in Busan. - Reuters
SEOUL: South Korea pledged on Monday (Jan 20) a record amount of financing support for exporters to mitigate any negative impact from changes in US trade policies as Donald Trump was poised to be sworn in for his second presidency.
The government plans to provide 360 trillion won (US$247.74 billion) worth of policy financing to exporting companies through state-run banks and institutions this year, according to a statement released by the finance ministry.
"There are concerns that external uncertainty will be heightened under the incoming US administration and adversely affect exports," the ministry said.
The ministry said it would also boost insurance support to guard against foreign exchange volatility.
Sectors particularly under threat of new US policies are semiconductors and rechargeable batteries, the ministry said, whereas defence, nuclear energy and shipbuilding sectors are seen as more promising because of room for cooperation with the United States.
US President-elect Trump, who takes office later on Monday, has pledged to impose stiff tariffs on major trading partners, such as Mexico, Canada and China, which are also expected to affect South Korean companies running factories in those countries.
Economists say there are worries that the Trump administration will introduce trade policies against South Korea too, after Asia's fourth-largest economy earned a record-high surplus of US$55.7 billion in trade with the US in 2024, up 25.4 per cent from 2023.
The Korea International Trade Association, South Korea's biggest group of exporting companies, projects export growth to slow to 1.8 per cent this year. Last year, South Korea's exports rose 8.1 per cent to a record high of US$683.7 billion, as sales to the US rose 10.4 per cent. - Reuters
