Ministry of Trade, Industry and Energy to Provide 360 Trillion Won in Trade Finance... Aiming for Record High Export of 680 Billion USD

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Dongwoo Lee] The Ministry of Trade, Industry and Energy plans to support the export activities of Korean companies by supplying a record-high trade finance of 360 trillion won next year. It will encourage companies to invest around 100 trillion won in facilities and attract more than 30 billion dollars in foreign investment.

On the afternoon of the 27th, the Ministry reported the '2023 Work Plan' containing these details to President Yoon Suk-yeol at the Blue House State Guest House. Despite the anticipated twin cliffs of export and investment due to the global economic downturn next year, the government announced its goal to achieve export performance exceeding 680 billion dollars, the largest ever.

The Ministry first expects exports to contract by 4.5% compared to this year due to factors such as semiconductor price declines next year. To overcome this crisis, it plans to supply the largest-ever trade finance, diversify export markets, and boost exports in nuclear power and defense industries. It will provide trade finance at a record-high level of 360 trillion won next year. To alleviate the burden of high interest rates, a low-interest loan program for early-stage export companies will be newly established. Related budgets totaling 900 billion won will be invested in the first half of next year to expand support for participation in overseas exhibitions and provide export vouchers for venture and export-support companies.

For companies exporting to emerging markets and resource-rich countries expected to experience high growth next year, the Ministry will focus on preferential trade insurance, expansion of branch offices, and customized support by market. It will strengthen nuclear power plant orders in Poland and the Czech Republic, and for new markets such as the Philippines, the United Kingdom, and T?rkiye, it will prepare tailored order strategies by country and maintain continuous high-level government-to-government consultation channels. Targeting the Middle East market, it will thoroughly implement follow-up measures of the Korea-Saudi economic summit diplomacy and support Korean companies’ entry into plant and infrastructure projects. It will strengthen mineral cooperation with resource-rich Latin American countries and pursue new Free Trade Agreements (FTAs). With a goal of 17 billion dollars in defense industry exports next year, more than 1 trillion won will be invested over five years in dual-use R&D (research and development).

To revitalize the real economy, the Ministry will closely support facility investments of 100 trillion won in the top 10 key industries. It will introduce a three-part rapid administrative system including a win-win incentive system, a permit timeout system, and exemption from preliminary feasibility studies by public institutions. The tax credit rate for increased facility investments will be expanded from a maximum of 3-4% to 10%. For foreign investment in national advanced strategic technology sectors such as semiconductors and secondary batteries, up to 50% of the investment amount will be supported in cash.

The 'Energy Renaissance Project,' which uses five new energy industries including hydrogen as growth engines, will be carried out. The hydrogen power generation bidding market will open in the first half of next year, and a liquefied hydrogen plant with an annual capacity of 40,000 tons will be established to begin demonstration projects for hydrogen mixed combustion at power plants. The environmental impact assessment related to the construction of Shin Hanul Units 3 and 4 nuclear power plants will be completed promptly, and site preparation work is planned to start next year. To restore the nuclear power ecosystem, nuclear power orders worth 3.5 trillion won, an increase of 1.1 trillion won compared to this year, will be supplied. Procedures for continued operation of seven nuclear power plants, including Kori Units 2, 3, and 4, whose design lives are expiring, will also proceed.

To restore the nuclear power ecosystem, 3.5 trillion won worth of orders will be supplied next year. To strengthen energy security, construction of the 'Dangjin Gas Base Storage Facility' in Dangjin, Chungnam Province will begin, and by 2025, the goal is to stockpile more than 100 million barrels of oil, with an additional 470,000 barrels to be secured next year. Stockpiling of key minerals used in secondary batteries and electric vehicles, such as lithium and manganese, will also be expanded from an average of 54 days to 100 days.

'Bioeconomy 2.0' will be fostered as a future industry for innovation and growth across the entire industry. Next year, 69 billion won will be invested in leading bio-material projects. A total of 300 billion won will be invested in biofoundries, and 400 billion won will be allocated for bioenergy technology development, with preliminary feasibility studies to be conducted.

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