Yoon: "Expanding Trade Finance Supply to 350 Trillion Won... Ensuring the Realization of the Second Overseas Construction Boom"

- Presided over the 7th Emergency Economic and Livelihood Meeting in Busan... "Exports and Overseas Construction Orders Are Key Drivers of the Economy"
- Providing Liquidity to Ease Difficulties for Export Companies... "Increasing Capital of Overseas Infrastructure Support Corporation to 2 Trillion Won"

[Image source=Yonhap News]

[Asia Economy Reporter Bae Kyunghwan] President Yoon Suk-yeol announced plans to expand the scale of trade finance supply to 350 trillion won to alleviate the difficulties faced by export companies. Additionally, to support the overseas construction sector, the capital of overseas infrastructure support projects will be increased to 2 trillion won, and the support scale of the Export-Import Bank will also be raised to over 50 trillion won.

On the morning of the 31st, at the 7th Emergency Economic and Livelihood Meeting held at Hanjin Busan Container Terminal, President Yoon stated, "The government will do its utmost to immediately resolve the difficulties faced by export companies," presenting these support measures.

At the meeting, President Yoon pointed out, "Although recent export volumes have reached record highs, the outlook for export performance in the second half of the year is not very bright due to the decline in semiconductor prices," and added, "Overseas construction orders, which reached 71 billion USD in 2010, have stagnated at around 30 billion USD annually since 2016." This reflects the judgment that exports and overseas construction orders, which are the driving forces of the economy, must play their roles considering the domestic economy's highest level of external dependence in the world.

As a solution, he proposed "stable liquidity supply." First, President Yoon announced, "To immediately resolve the difficulties faced by export companies, we will expand the scale of trade finance supply to a record high of 350 trillion won." For key export industries, management measures to maintain a super-gap competitiveness were introduced. The core is to focus on responding to three major risks?▲contraction of exports to China ▲high energy prices ▲decline in semiconductor exports?to improve the trade balance. President Yoon urged, "The Ministry of Trade, Industry and Energy and related ministries should carefully examine and improve the difficulties of our export companies on the ground."

He also directed strategic new attempts in the overseas construction sector. President Yoon said, "Through sufficient financial support from policy financial institutions, the government will actively help companies to boldly challenge technological innovation and market development and enter high value-added investment development projects," proposing to increase the capital of overseas infrastructure support projects from 500 billion won to 2 trillion won and to expand the Export-Import Bank’s support scale to over 50 trillion won. President Yoon emphasized, "Although there have been recent achievements such as defense exports to Poland and nuclear power plant orders in Egypt, it is important to continuously produce significant results," and added, "If we all unite tightly as Team Korea, the second overseas construction boom will surely be realized."

In addition, President Yoon mentioned the relocation of the Korea Development Bank to Busan. This is based on the judgment that financial support is important for Busan to develop into a world-class maritime city, trade city, and advanced technology industry city. President Yoon added, "We will focus diplomatic efforts on attracting the 2030 Busan Expo and actively support the prompt promotion of major issues such as the Gadeokdo New Airport and North Port redevelopment."

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