Ministry of Industry 3rd Supplementary Budget 813.6 Billion KRW... 351.5 Billion KRW Less Than Government Proposal

'Export Support' Decrease in K-Sure Contributions and High-Efficiency Home Appliance Purchase Rebate Program↓

[Asia Economy Reporter Moon Chaeseok] The Ministry of Trade, Industry and Energy's 3rd supplementary budget has been finalized at 813.6 billion KRW. This is 351.5 billion KRW less than the budget initially proposed by the government.

The Ministry announced on the 3rd at around 11 PM that the 3rd supplementary budget passed by the National Assembly amounts to 813.6 billion KRW (covering 28 projects).

Specifically, ▲ Export and investment activation 261.7 billion KRW ▲ Domestic demand stimulation and crisis industry support 172 billion KRW ▲ K-Quarantine industry development 7.9 billion KRW ▲ Korean New Deal 372 billion KRW will be allocated respectively.

Except for K-Quarantine, all were cut. The Ministry’s original proposal allocated 361.7 billion KRW, 317.5 billion KRW, 7.9 billion KRW, and 478 billion KRW respectively.

Source: Ministry of Trade, Industry and Energy

The export and investment activation project centers on a 227.1 billion KRW contribution to the Trade Insurance Fund to support liquidity for export companies.

The Korea Trade Insurance Corporation (K-Sure) proactively supports conditional trade finance for overseas clients placing orders with Korean companies.

Additionally, K-Sure guarantees allow export SMEs to immediately convert export receivables into cash at commercial banks or obtain management stabilization loans from banks.

This project was cut by 100 billion KRW compared to the government’s original budget proposal.

The domestic demand stimulation project includes an additional 150 billion KRW for the top-efficiency home appliance purchase rebate program. This is 150 billion KRW less than the government’s proposal.

This system refunds consumers 10% of the purchase cost of energy-efficient products, up to a limit of 300,000 KRW per person.

The additional support for the Korean New Deal project is 372 billion KRW.

By category, 28.2 billion KRW was added for building a smart power platform, and 36.5 billion KRW for the citizen shareholder-type new and renewable energy project.

The citizen shareholder project is a policy where residents invest equity or purchase bonds in new and renewable energy projects, and costs are financed through long-term low-interest loans.

Additionally, 100 billion KRW supports solar power loans in industrial complexes, and 20 billion KRW supports core technology development for new and renewable energy.

An official from the Ministry said, "We will expedite execution and do our best in management to maximize the effect of the 3rd supplementary budget."

This content was produced with the assistance of AI translation services.