Government's Full-Scale Response to 'Export Rebound'... Up to 181 Trillion Won in Trade and Export Financing Provided

Joint Measures by Related Ministries for Additional Support to Boost Exports
Expansion of Export Voucher and Overseas Exhibition Support
Promotion of Preliminary Feasibility Study Exemption for Public Institutions in Yongin Semiconductor National Industrial Complex

The government has decided to supply up to 181 trillion won in trade and export financing by the end of the year to reverse the export decline that has continued for 11 months. Additionally, to strengthen industrial competitiveness for structural export expansion, starting next year, it will provide subsidies of up to 50% of investment funds to returning companies in national advanced strategic industries such as semiconductors. It will also promote exemption from preliminary feasibility studies for public institutions to expedite the establishment of the Yongin Semiconductor National Industrial Complex, where advanced semiconductor manufacturing plants are concentrated.

Deputy Prime Minister for Economy Choo Kyung-ho is giving a speech at the Emergency Economic Ministers' Meeting and Export Investment Measures Meeting held at the Seoul Government Complex on the 4th. Photo by Jo Yong-jun

On the 4th, the government held an emergency economic ministers' meeting combined with an export investment countermeasures meeting and finalized and announced 'Additional Support Measures for Export Revitalization.'

A government official explained, "Exports from January to August this year decreased by 12.4% compared to the previous year (409.3 billion USD), but have shown an improving trend since the first quarter low point," adding, "This measure was prepared to concentrate cross-ministerial policy capabilities and provide full support so that our exports can rebound more quickly and support economic recovery."

Existing Trade Finance Balance of 158.6 Trillion + 17.4 Trillion Export Finance for New Export Market Development

The government will expand support for export infrastructure, including trade finance, marketing, and export vouchers, and improve the support system centered on demanders (export companies) by easing customs and logistics regulations.

First, to alleviate financial difficulties for export companies, the private and public sectors will jointly supply up to 181.4 trillion won in 'trade and export financing' by the end of the year. Of the existing 364.7 trillion won in trade finance, 158.6 trillion won remains to be supplied, and an additional 17.4 trillion won will be provided for new export market development and other export financing.

Along with this, banks will autonomously cooperate with guarantee institutions to newly supply 5.4 trillion won worth of private bank preferential export products to support export companies. Loan interest rates will be preferentially reduced by up to 1.5 percentage points, and guarantee fees will be reduced by up to 0.8 percentage points to reduce the cost burden on export companies. Fully guaranteed products and automatic maturity extension products will also be supplied, and the preferential targets will be expanded to companies preparing for export or reshoring (relocating production facilities of overseas companies back to Korea).

Additionally, the number of companies supported for overseas exhibition participation expenses, either through industry consortia or individual companies, will increase from 5,478 to 5,646, and the support scale will expand by 19.8% from 12.6 million won this year to 15.1 million won next year. To support export companies in various fields, the support scale in 2024 will increase to 167.9 billion won (3,984 companies). The bonded factory patent standards for small and medium enterprises will be relaxed, and for small cargo owners, the free pre-entry period for export containers at Busan New Port will be extended from the current 3-4 days to 5 days, further strengthening support for SME exports.

To diversify export markets, the government will actively support exports and orders in emerging markets such as the Middle East and ASEAN by dispatching order support teams and expanding policy financing. Teams such as Saudi One Team Korea and Indonesia-Colombia Green Industry Order Teams will be dispatched locally, and an additional 250 billion won will be raised in a special account at the Export-Import Bank to support orders from low-credit countries with high growth potential. Within this year, the Korea-China Economic Ministers' Meeting and Korea-China Economic Cooperation Exchange Meeting between companies will be held to strengthen economic cooperation with China, one of Korea's major export countries.

Support for strengthening industrial competitiveness for structural export expansion will also accelerate. Starting next year, subsidies of up to 50% of investment funds will be provided to returning companies in national advanced strategic industries such as semiconductors. Furthermore, exemption from preliminary feasibility studies for public institutions will be promoted to expedite the establishment of the Yongin Semiconductor National Industrial Complex, where advanced semiconductor manufacturing plants are concentrated.

Moreover, to target the global content market, a new 'K-Content Strategic Fund' worth 1 trillion won will be established to invest in large projects. In the energy sector, incentives such as management evaluation points will be expanded to encourage power generation public enterprises to use domestic equipment when expanding overseas.

(Photo) [Image source=Yonhap News]

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