Minister Lee Chang-yang: "Trade Surplus Possible in June... Accelerating Support for Export Expansion"

Expansion of Specialized Trade Finance for Mid-sized Companies to 33 Trillion Won Within the Year
Strengthening Support for Consumer Goods and Smart Farm Exports

Lee Chang-yang, Minister of Trade, Industry and Energy, mentioned the possibility of a trade surplus in June.

At the 3rd Pan-Government Export Situation Check Meeting held at the government Seoul office on the 27th, Minister Lee said, "The June trade balance, to be announced over the weekend, is expected to improve significantly, approaching balance, and there is also hope for a surplus." He added, "We must further accelerate the strong export drive at the pan-government level."

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is presiding over the "3rd Pan-Government Export Status Check Meeting" held on the 27th at the video conference room of the Government Seoul Office Building. Provided by the Ministry of Trade, Industry and Energy. [Image source=Yonhap News]

In fact, exports from the 1st to the 20th of this month increased for the first time in 10 months, raising the possibility of a rebound in the second half of the year, with the deficit since December 2021 reaching its minimum. To strengthen export competitiveness, the Ministry of Trade, Industry and Energy plans to announce the 'Industrial Transformation Strategy' centered on the private sector in July, prioritize key export and investment tasks as policies, and establish strategies to enhance competitiveness by industry. They will expand exports of smart farms and consumer goods and increase specialized trade finance for mid-sized companies to 33 trillion won this year.

The government has prepared plans to expand exports in consumer goods (such as food, cosmetics, and pharmaceuticals) and smart farm sectors to build a stable export portfolio. The share of consumer goods exports, which was 11.8% last year, will be expanded to 18% by 2027, fostering the consumer goods industry as a new export engine.

To this end, support will be strengthened for marketing linked to Hallyu, content, e-commerce, and specialized trading companies; responses to non-tariff barriers such as overseas certification, customs clearance, and quarantine; policy fund supply including 9.5 trillion won in consumer goods export insurance by 2025 and the establishment of a 1 trillion won K-Bio Vaccine Fund; and support for entering the Chinese market linked to new consumption trends such as single, angel, and silver consumers. To expand smart farm exports, plans include establishing smart farm trade offices in promising regions such as the Middle East, strengthening the use of overseas joint logistics centers, and promoting trade insurance support for smart farms.

Customized support for export companies by type of small and medium-sized enterprises (SMEs) and mid-sized companies will also be actively promoted. This includes expanding support for early-stage export companies from consulting to overseas marketing, providing matching services with specialized trading companies for indirect export companies, and launching a support group for converting domestic mid-sized companies with excellent export potential into export companies (in August). Additionally, a 'Mid-sized Company Leap Support Fund' worth 1 trillion won will be established by 2027.

Furthermore, the pan-government export field support team, which has operated 15 times since September last year, will be reorganized and operated from July focusing on 30 promising export items.

Minister Lee emphasized, "To achieve stable improvement in the trade balance and an early transition to export surplus, it is necessary to further accelerate support for export expansion. We plan to actively expand marketing support for promising export items, including consumer goods, along with resolving field difficulties connected to export expansion."

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