[2025 Audit] "KDB Tariff Response Loan Program Nearly Depleted... Additional Support Measures Needed"

Facility Investment Program Expected to Be Fully Depleted Within the Year
Low-Interest Tariff Response Support Reaches 98.9% Utilization by October
Choo Kyungho: "Additional Support Needed for Exporters to the United States"

It has been analyzed that the budget for the Korea Development Bank's support program for companies affected by tariffs is expected to be depleted soon. There have been calls for the state-run bank to prepare additional support measures for companies exporting to the United States.

According to data received by Choo Kyungho, a member of the National Assembly's Political Affairs Committee from the People Power Party, from the Korea Development Bank on the 24th, the bank is currently operating the Core Industry Plus Facility Investment Support Special Program and the Low-Interest Tariff Response Support Program.

The facility support program has a budget of 1 trillion won. It supports facility and R&D investments in the fields of secondary batteries, biotechnology, artificial intelligence (AI), robotics, hydrogen, and next-generation transportation and mobility solutions.

After its launch on May 30, the number of cases supported was only 3, with a total of 75 billion won, as of the third week of August. However, starting from the fourth week of August, the number increased to 5 cases and 172.5 billion won, and by the fifth week of last month (October 2, before the Chuseok holiday), a total of 14 cases and 510 billion won had been used.

This month, the allocation for companies totaling 490 billion won has been completed and is currently undergoing the approval process. Considering this situation, it is expected that the entire budget will be depleted within the year.

The Low-Interest Tariff Response Support Program also saw only 3 cases and 13 billion won supported as of the third week of August, but after an additional case and 2 billion won were provided in the fourth week of August, the execution speed accelerated. By the fifth week of last month, a total of 118 cases and 1.425 trillion won had been used.

Including the funding applications submitted this month, the total reaches 2.9682 trillion won, which accounts for 98.9% of the allocated amount.

Of the 1.425 trillion won used by the end of last month, most was spent supporting industries subject to itemized tariffs. Of this, 38% (58 cases, 541 billion won) went to the automobile and auto parts sector, and 22.4% (27 cases, 319.8 billion won) was allocated to the steel sector.

Last month, as tariff-related damages to companies spread, the Korea Development Bank eased the interest rate reduction limit from the previous 0.20 percentage points to 0.50 percentage points, and increased the loan limit for small businesses from 3 billion won to 30 billion won, and for mid-sized companies from 5 billion won to 50 billion won. Large companies affiliated with groups, in addition to small and mid-sized businesses, were also added to the list of eligible recipients.

Assemblyman Choo stated, "This month, exports to the United States have plunged by nearly 25 percent, signaling the full onset of the 'tariff shock.' The state-run bank must prepare additional support measures to minimize damages to companies in industries subject to itemized tariffs and to exporters to the United States."

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