South Korea represents Trump’s policies with the largest foreign investment support Via Reuters

SEOUL (Reuters) – South Korea pledged on Monday a record amount of financial support for exporters to offset any negative impact of US trade policy changes as Donald Trump was about to being sworn in for his second term as president.

The government plans to provide strategic funds worth 360 billion won ($247.74 billion) to foreign companies through banks and state-run institutions this year, according to a statement released by the finance ministry.

“There are concerns that external uncertainty will worsen under the incoming US administration and adversely affect exports,” the agency said.

The ministry said it will strengthen insurance support to guard against foreign exchange fluctuations to 1.4 trillion won this year, from 1.2 trillion won last year, and the use of money in government projects, such as trade fairs and delegations, to 2.9 trillion won from 2.1 trillion won. .

The sectors at risk of the new US policies are semiconductors and renewable batteries, the ministry said, while defence, nuclear power and shipbuilding are seen as the most promising due to the region’s cooperation with the United States.

US President-elect Trump, who takes office later on Monday, has pledged to impose tougher tariffs on major trading partners, such as Mexico, Canada and China, which are also expected to hit companies in South Korea that operates factories in those countries.

Economists say there are concerns that the Trump administration will introduce trade policies against South Korea again, after Asia’s fourth-largest economy achieved a record $55.7 billion in trade with the US in 2024. an increase of 25.4% from 2023.

The South Korea International Trade Association, South Korea’s largest group of exporting companies, projects export growth to 1.8% this year. Last year, South Korea’s exports rose 8.1% to a record high of $683.7 billion, while sales to the US rose 10.4%.

($1 = 1,453.1500 won)