The government is set to expand its trade finance supply to 360 trillion won this year to support exports and respond to uncertainties in the global trade environment. As part of the new external economic strategy, measures include increasing investment tax credits for semiconductor companies and providing 14 trillion won in low-interest policy financing.
An industrial competitiveness enhancement plan was announced as part of the ‘2025 Economic Policy Direction’, with strategies to counteract uncertainties in trade environments. This involves public-private collaboration to establish mutually beneficial US-Korea relations in response to the trade policies of Donald Trump’s second-term U.S. administration.
Additionally, to combat the strengthened protectionism prompted by the US-China rivalry, Korea plans to expand its trade network with emerging markets like the Global South, Asia, Africa, and the Middle East.
In response to the EU’s Carbon Border Adjustment Mechanism (CBAM) and the U.S. Foreign Pollutant Fees Act (FPFA), the government aims to alleviate domestic corporate burdens.
Supporting new export businesses like nuclear power, defense, and content industries is a priority, along with extending tax benefits for small and medium enterprises (SMEs) for one more year.
Other initiatives include flexible currency-risk strategies, diversification of marine logistics routes, expansion into emerging markets with cooperative logistics centers, and the launch of a K-logistics task force for a long-term supply chain master plan.
The government also plans to enhance the competitiveness of key industries like semiconductors, advanced batteries, shipbuilding, and steel by providing tailored support and expanding R&D investments. Specific measures include financing and support for strategic industries, adapting regulations quarterly for technological innovations, and fostering supply chain resilience against global risks.
For shipbuilding, the government is increasing the foreign workforce ratio and supporting military repair order bids. In the steel sector, technology development projects for special steel and responses to unfair trade practices are planned. Support measures for the automotive and petrochemical industries are also being organized to strengthen competitiveness and facilitate restructuring.
Overall, these initiatives reflect a comprehensive approach to bolster Korea’s industrial competitiveness and export capabilities in a rapidly changing global economic landscape.