Government to Provide 350 Trillion KRW in Trade Finance to Export Companies

Maximum Trade Insurance Contract Limit
Providing 60 Billion Won Low-Interest Loans to SMEs

The government has decided to provide trade insurance coverage up to a record high of 351 trillion won to support domestic export companies' financing. Additionally, it will offer special low-interest loans worth 60 billion won to small and medium-sized enterprises (SMEs) and plans to resolve over 30 export-related difficulties faced by export companies early within this year.

On the 31st, the Ministry of Trade, Industry and Energy announced this 'Export Competitiveness Enhancement Strategy' at the 7th Emergency Economic and Livelihood Meeting presided over by the President, held at Busan New Port.

First, to improve the trade balance, the government raised the trade finance limit from the initially set 261 trillion won in the economic policy direction to 351 trillion won, an increase of 90 trillion won. Accordingly, the guarantee limits for SMEs and mid-sized companies were also increased from 5 billion won each to 7 billion won for SMEs and 10 billion won for mid-sized companies. Through the Korea Trade Insurance Corporation, starting this month, export companies will receive support with interest rates of 2 to 2.5% per annum and loan terms of 3 years (2 years grace period and 1 year installment repayment), with a maximum of 300 million won per company. ▷Related article on page 4

Customs benefits will also be expanded. In many countries, the export of semiconductor equipment and other unassembled production facilities shipped in multiple batches will be allowed before import declaration acceptance. In such cases, the tax burden can be alleviated by applying the finished product tariff rate. Among 139 difficulties received from industry associations and economic organizations in four major areas (corporate burden reduction, logistics and customs, new industries, and green transition), 33 will be resolved within this year.

Responses to the three major export-import risks in our trade?trade deficit with China, semiconductor price decline, and increase in energy import costs?will be strengthened. Marking the 30th anniversary of Korea-China diplomatic relations, an industrial and trade ministers' meeting will be held in the second half of this year, and the economic ministers' meeting between the two countries will be regularized to stably support Korean companies' export activities to China. For semiconductors, based on the National Advanced Strategic Industry Act, more than 340 trillion won will be supported over the next five years, and 150,000 related personnel will be trained over the next ten years.

Government research and development (R&D) funds of 3.7 trillion won will be provided by 2026 to advance key export items such as system semiconductors, eco-friendly and autonomous ships.

Minister of Trade, Industry and Energy Lee Chang-yang said, "We will join forces between the public and private sectors so that Korean exports, which have been a strong pillar of our country's economic growth, can contribute to overcoming recent domestic and international crises."

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