South Korea Bolsters Exports with Record-Breaking Financial Support Amidst Global Uncertainties

The South Korean government has announced an unprecedented supply of trade finance amounting to 360 trillion won (US$247 billion) in 2025, aiming to support the continuation of the export growth trend despite adverse conditions. This strategic move comes in anticipation of potential policy shifts under the second Trump administration in the United States and seeks to mitigate the impact of global trade uncertainties on the country's export-driven economy.

The government's plan includes the launch of a "Special Program for Mega Orders," which will allocate 95 trillion won over five years from 2024 to 2028. This program, initially set at 85 trillion won, has been increased by 10 trillion won to further strengthen the export sector. Additionally, the scale of trade finance has been increased by 5 trillion won from last year, reflecting the government's commitment to sustaining export momentum.

A government official emphasized the importance of this initiative, stating, "We will support the continuation of the export growth trend in difficult conditions through emergency liquidity support for export-struggling companies and the largest-ever supply of trade funds." This sentiment was echoed by a Ministry of Economy and Finance official, who noted, "We are communicating with the U.S. through all available means, including the Foreign Relations Ministers' Meeting, regarding various matters."

The decision to increase trade finance is rooted in the diagnosis that the export growth trend may slow down due to the anticipated policy changes under the second Trump administration. Historically, Trump's trade policies have included protectionist measures such as tariffs and renegotiation of trade agreements, which have had significant implications for global trade dynamics. As a result, the South Korean government is proactively preparing scenario-based action plans to mitigate potential risks.

To reduce dependence on major markets like the U.S. and China, which currently account for 54.9% of South Korea's total exports, the government plans to diversify its export portfolio. Last month's export figures highlight the significance of these markets, with exports to the U.S. reaching $11.91 billion and to China $11.8 billion. Financial support will be prioritized for companies that diversify their export regions and items, thereby enhancing resilience against market-specific risks.

In addition to trade finance, the government will expand the support scale for exchange rate fluctuation insurance by 200 billion won to 1.4 trillion won. The limit per company for this insurance will be increased to a maximum of 150% until June this year, providing further stability for exporters facing currency volatility. The supply chain stabilization program, aimed at securing high-risk economic security items, will also continue to be promoted.



In conclusion, the South Korean government's move to provide extensive financial support to bolster exports in 2025 is a strategic and risk management approach aimed at maintaining economic growth, promoting export diversification, addressing global trade uncertainties, supporting strategic export industries, and ensuring supply chain stability. This proactive approach will help South Korea maintain its export growth trend and strengthen its economic resilience in the face of global challenges.