50% Tariff Shock: 570 Billion Special Support for Steel and Aluminum Industry with Reduced Interest Burden
Minister of Industry: “Support for companies impacted through collaboration of 13 ministries… Will provide timely support”, Economy and Finance Minister Koo Yoon-cheol presides over the ‘Economic Ministers’ Meeting’ at the government complex in Jongno-gu, Seoul, on the 22nd. (Provided by the Ministry of Economy and Finance. Reproduction and DB prohibited) 2025.8.22/News1,
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, ‘(Sejong=News1) Reporter Kim Seung-jun = The government is launching a 13.6 trillion won emergency management fund to support domestic companies directly hit by the U.S. tariff policy. Along with this, it plans to expand export insurance and loan guarantees worth 270 trillion won mainly targeting small and medium-sized enterprises with relatively weak management conditions. ‘,
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, ‘Furthermore, in addition to short-term measures like emergency management funds and expanded guarantees, long-term support plans such as creating domestic demand and diversifying export markets will be pursued. Examples include expanded subsidies for electric vehicles, encouraging the use of domestic steel in infrastructure construction, and supporting entry into new markets.’,
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, “The Ministry of Trade, Industry and Energy announced these follow-up support measures for the U.S. tariff negotiations at the economy-related ministers’ meeting and the industrial competitiveness enhancement meeting jointly with relevant ministries on the 3rd.”,
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, ‘The ministry stated, “A 15% reciprocal tariff could still act as a downward factor for our exports, and tariffs could lead to decreased operating margins and management deterioration for export companies.” They explained that they prepared support measures based on three principles: mobilizing all available policy tools, total government effort, and focusing on the policy demand (companies).’,
, ‘Firstly, the government will support 13.6 trillion won in emergency management funds via policy financial institutions through expanded lending and interest rate cuts.’,
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, “Specifically, the Industrial Bank of Korea will expand the loan limit for existing small and medium enterprises (30 billion won) and mid-sized enterprises (50 billion won) by tenfold and cut interest rates by 0.3 percentage points through the ‘Low-Interest Operating Funds for Tariff-Affected Industries’ program.”,
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, “The Export-Import Bank will ease the criteria for its ‘Crisis Response Special Program,’ cutting interest rates by up to 2.0 percentage points without imposing additional surcharges when credit ratings decline.”,
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, “The Credit Guarantee Fund will provide preferential support in guarantee rates and fees for companies affected by tariffs through the ‘Crisis Overcoming Special Guarantee.'”,
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, “The Korea SME and Startups Agency is expanding its support to include the ‘copper’ industry, along with existing support for steel, aluminum, automotive, and parts industries, in response to the expansion of tariff-targeted items, and will also provide emergency management stabilization funds.”,
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, ‘In addition to emergency management funds, trade insurance will be provided at the largest-ever level of 270 trillion won.’,
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, ‘The Korea Trade Insurance Corporation plans to expand the discount target for insurance and guarantee fees to cover all industries subject to tariffs before imposition, extending the support period to the year-end to allow more companies to benefit.’,
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, “Additionally, to ensure that small and medium-sized export enterprises have adequate funds, a ‘Special Guarantee Limit Addition Program’ will be introduced, adding 0.5 times the loan guarantee limit per company.”,
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, “There could still be blind spots in support, so measures will be taken to ease guarantee conditions and limits for companies experiencing financial deterioration due to tariffs through ‘special reviews.’ Furthermore, new support for mid- to long-term operating funds will be provided to overseas subsidiaries facing management difficulties due to tariffs.”,
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, ‘Furthermore, a 4.2 billion won export voucher, logistics cost support limit increase from 30 million won to 60 million won, and a one-stop consultation window for tariff response (Customs Response 119) are planned.’,
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, Export containers piled up at Pyeongtaek Port, Poseung-eup, Pyeongtaek-si, Gyeonggi-do. 2025.8.25/News1. ⓒ News1 Reporter Kim Young-woon,
, ‘A special financial support package totaling 570 billion won will be provided to the steel, aluminum, and derivative product industries subjected to a 50% level of tariffs.’,
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, ‘Initially, the government will introduce a 150 billion won interest subsidy program to ease the interest burden on small and medium-sized enterprises.’,
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, ‘The Korea International Trade Association will also separately allocate 20 billion won for urgent low-interest loans for steel, aluminum, and derivative product companies (members) with a special preferential interest rate of 1.5-2.0%.’,
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, “In addition, a 400 billion won ‘Steel Export Supply Chain Reinforcement Guarantee Product’ will be newly promoted, which preferentially lends manufacturing funds to partnering companies of exporting conglomerates and financial institutions and expands guarantee limits. Previously, the ‘Automotive Partner Preferential Financing Product’ (Export Supply Chain Reinforcement Guarantee) was launched for cooperation between finished vehicle manufacturers and parts companies last month.”,
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, After the U.S. tariff negotiations, ‘On-Site Sensory 10 Support Programs’ (Provided by the Ministry of Trade, Industry and Energy) 2025.9.3 /News1,
, ‘To compensate for decreased demand due to tariffs, policies to create domestic demand for major export items will be pursued.’,
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, ‘To this end, measures such as establishing electric vehicle transition support funds and providing rebates for purchasing high-efficiency appliances will expand consumer demand for automobiles and appliances. For industries primarily in the B2B market, such as steel, secondary batteries, and machinery, initiatives to encourage the use of domestic steel during infrastructure and construction, replace outdated machinery regionally, and expand ESS (Energy Storage System) distribution will absorb decreased short-term export quantities domestically.’,
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, “Further support includes strengthening anti-circumvention dumping investigations through the Korea Customs Service’s ‘Trade Security Special Investigation Team,’ amending the Law for Responding to Trade Changes to support unilateral measures from trading partners, establishing a 100 trillion won ‘National Growth Fund’ to promote domestic investment, and supporting investment activation through ‘Materials, Parts, and Equipment Investment Support Funds’.”,
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, ‘Efforts to reduce export reliance on specific countries through market diversification policies will also be made.’,
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, ‘The Korea Trade Insurance Corporation offers up to 100 million won in special guarantee limits for preliminary companies with insufficient export records when they sign contracts to enter new markets without separate evaluation. Furthermore, doubling the credit guarantee limit for early cash conversion of export receivables when U.S. exporting companies diversify transactions to other markets will be pursued.’,
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, ‘In conjunction, the Korea Trade-Investment Promotion Agency (KOTRA) will expand its one-stop overseas certification service, provide high-cost certification preliminary consulting, and increase the support target for overseas exhibitions, trade missions, and Hallyu expositions from 1,600 to 3,000.’,
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, ‘Industry Minister Kim Jeong-gwan stated, “13 ministries have collaborated to devise strategies to respond to tariffs,” adding, “We will rapidly implement today’s announced measures on-site, while continuously discovering the necessary support methods for businesses to timely respond to changing trade environments and create new opportunities.” \n’]