Yongin Semiconductor Industrial Complex Exempted from Preliminary Feasibility Study... KRW 181 Trillion Trade and Export Financing Supplied (Update)

'Additional Support Measures for Export Promotion'
Expansion of Export Voucher and Overseas Exhibition Support Scale
Promotion of Preliminary Feasibility Study Exemption for 'Yongin Semiconductor National Industrial Complex' Public Institutions

The government has decided to supply up to 181 trillion won in trade and export financing by the end of the year to achieve a 'positive turnaround' in exports, which have been declining for 11 consecutive months. Additionally, to expedite the establishment of the Yongin Semiconductor National Industrial Complex, it will pursue an exemption from the preliminary feasibility study for public institutions established in the Yongin Semiconductor National Industrial Complex. From next year, subsidies of up to 50% of investment costs will be provided to returning companies in national advanced strategic industries such as semiconductors.

Deputy Prime Minister for Economy Choo Kyung-ho is delivering 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 dollars), 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 Channels

The government will expand support for export infrastructure by increasing the scale of trade finance, marketing, export vouchers, and improving the support system centered on demand (export companies) by easing customs and logistics regulations.

First, to alleviate financial difficulties of 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. Out of the existing trade finance of 364.7 trillion won, 158.6 trillion won remains unsupplied, and an additional 17.4 trillion won will be supplied for support such as new export channel development.

Along with this, banks will autonomously cooperate with guarantee institutions to newly supply 5.4 trillion won worth of private bank export preferential products to support export companies. Loan interest rates will be preferentially reduced by up to 1.5 percentage points, and guarantee fees will be preferentially 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 target will be expanded to companies preparing for export or reshoring companies (companies relocating production facilities back to Korea from overseas).

Additionally, the number of companies supported for overseas exhibition participation expenses, either by industry consortiums 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. Furthermore, to support export companies in various fields, the support scale in 2024 will increase to 167.9 billion won (3,984 companies). The patent standards for bonded factories for small and medium enterprises will be relaxed, and for small and medium 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 special account will be established 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 our major export countries.

(Photo) [Image source=Yonhap News]

Early Construction of Yongin Semiconductor National Industrial Complex... Pursuit of Public Institution Preliminary Feasibility Study Exemption

Support to strengthen industrial competitiveness for structural export expansion will also be accelerated. To quickly establish the Yongin Semiconductor National Industrial Complex, where advanced semiconductor manufacturing plants such as system semiconductors are concentrated, an exemption from the preliminary feasibility study for public institutions will be pursued. This is expected to be the first case of exemption for public institutions among the seven national advanced strategic industry specialized complexes.

In addition, support for attracting private investment will be strengthened through financing (loans) and subsidies for the seven newly designated national advanced strategic industry specialized complexes this year, including semiconductors (Yongin, Pyeongtaek, Gumi), secondary batteries (Pohang, Cheongju, Ulsan, Saemangeum), and displays (Cheonan, Asan).

From next year, for returning companies in national advanced strategic industries such as semiconductors, which currently stand at about 29%, domestic return investment subsidies will be provided at a rate of up to 50% of the investment amount. To support research and development (R&D) funding in national advanced strategic industries, a new technology innovation loan support project (up to 5 billion won per company, with interest rates around 1-2%) will be established for small and medium-sized enterprises and mid-sized companies.

Furthermore, 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.

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