Koo Yoon-chul: "$6 Billion in Financial Support for Middle Eastern Countries... Calm Response to U.S. Section 301 Investigation"

Special Task Force on Cost of Living and Ministerial Meeting on External Economy

Koo Yoon-chul, Deputy Prime Minister and Minister of Strategy and Finance, is giving opening remarks at the "Special Management of Living Expenses Task Force and the 268th Foreign Economic Ministers Meeting" held at the Government Seoul Office in Jongno-gu, Seoul on the 21st. Ministry of Strategy and Finance

The government is moving to provide $6 billion in financial support to Middle Eastern countries experiencing temporary liquidity difficulties due to the war between the United States and Iran.

At the Foreign Economic Ministers Meeting held at the Government Seoul Office on May 21, Koo Yoon-chul, Deputy Prime Minister and Minister of Strategy and Finance, stated in his opening remarks, "As the saying goes, 'A friend in need is a friend indeed,' we will selectively support countries that have maintained close ties with Korea’s economic development."

The government plans to offer pre-financing, including emergency operating funds, totaling $6 billion, with $3 billion each provided by the Export-Import Bank of Korea and Korea Trade Insurance Corporation, targeting major clients in the Middle East.

Regarding the Section 301 investigation under the U.S. Trade Act, Deputy Prime Minister Koo mentioned, "We have actively presented our position through written submissions and participation in public hearings," adding, "We will continue to strongly assert that the balance of interests previously agreed upon must be maintained during upcoming bilateral consultations with the U.S. government."

On the recent move by the European Union (EU) to strengthen steel tariffs, he said, "We will prioritize national interests while actively negotiating with the EU and closely communicating with the industry to respond proactively."

At the meeting, supply chain restructuring measures were also discussed. Deputy Prime Minister Koo stated, "Taking into account the characteristics of each item and the structure of supply chains, we will support domestic production by linking tax incentives and subsidies for production promotion, and we will consider establishing new reserves for key industrial and essential consumer goods."

He further explained, "For items that are difficult to produce or stockpile domestically, we will secure overseas production bases or diversify import sources to significantly reduce dependence on any single country," adding, "Through these measures, we aim to bring the reliance on specific countries for economic security items down to a maximum of 50% or less by 2030."

Deputy Prime Minister Koo emphasized, "The vulnerability of global supply chains is once again coming to the fore," and underscored, "It is now time to move beyond a structure focused merely on efficiency and to strategically take on cost burdens to enhance supply chain resilience."

To ensure stable export conditions, the government plans to strengthen its network of trade agreements. Deputy Prime Minister Koo stated, "We will speed up negotiations to address complementary issues with China, India, ASEAN, and Singapore to enhance the utilization of free trade agreements (FTAs), and we will also expand agreements with emerging markets," adding, "In particular, as Serbia possesses a key manufacturing base for automobiles and components and serves as a strategic entry point to Europe, we will work to swiftly conclude the FTA negotiations."

At the Special Management of Living Expenses Task Force meeting held on the same day, Deputy Prime Minister Koo remarked, "As the uncertainty of the Middle East war continues, producer prices are rising and there is increasing upward pressure on consumer prices. The government will remain vigilant, uphold market order, and do everything possible to stabilize prices and minimize the burden on people's livelihoods."

To mitigate the impact of the Middle East war, the government has decided to extend the oil tax cut, which was initially set to end in May, by two months until July. The sixth round of maximum oil prices will be announced at 7 p.m. today following consultations among relevant ministries.

The meeting also covered the following topics: the sixth round of maximum oil price designations, measures to strengthen economic sanctions under the Price Stabilization Act, the results and response plans for the flour price-fixing investigation, improvements to management fee systems for multi-family housing, and the findings and future plans regarding a comprehensive survey of school uniform costs.

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