South Korea Launches $9.7 Billion Emergency Plan to Tackle U.S. Tariffs and Enhance Industrial Competitiveness
In response to tariffs imposed by Washington, South Korea has announced an emergency plan worth 13.6 trillion won ($9.7 billion) aimed at supporting the most affected companies and preserving the competitiveness of its industries.
Deputy Prime Minister and Finance Minister Ko Yun-chul revealed the details of the plan following a ministerial meeting on industrial competitiveness, emphasizing, “We will do everything we can to reduce the impact of U.S. tariffs and enhance the competitiveness of our industries.”
The plan includes an exceptional mobilization of public banks to inject liquidity into the economy, expanding low-interest loan programs and easing financing conditions. Additionally, the credit insurance coverage for exports will be raised to 270 trillion won, a record figure intended to secure cash flow for South Korean exporters.
Strategic Sectors at the Forefront
Some industries most affected by U.S. tariffs, such as steel, aluminum, and copper, which face tariffs of up to 50%, will receive support amounting to 570 billion won. This funding will be used to back interest payments, provide preferential loans, and create new trade financing tools.
Seoul, alongside emergency support, aims to maintain strategic sectors that form the backbone of its export industry and trade surplus, while reducing reliance on the U.S. market by enhancing diversification towards ASEAN countries, the Middle East, and Latin America. At the same time, programs will be activated to stimulate domestic demand, including promoting the purchase of electric vehicles and energy-efficient home appliances.
