South Korea increases foreign exchange insurance to KRW1.4t

The government will provide $248b in policy financing to exporting companies.

South Korea announced last week a record policy financing package to support exporters amidst concerns over potential impacts from US trade policies as Donald Trump prepared to begin his second term as president, reported Reuters.

The South Korean government will provide $247.74b in policy financing to exporting companies this year through state-run banks and institutions, the finance ministry said in a statement.

To mitigate risks, South Korea plans to increase insurance support against foreign exchange volatility to $0.98b (KRW1.4t), up from $0.84b (KRW1.2t) last year.

Funding for government projects, including trade fairs and delegations, will rise to $2.03b (KRW2.9t) from $1.47b (KRW2.1t).

Export sectors such as semiconductors and rechargeable batteries are viewed as particularly vulnerable to new US policies.

However, the ministry identified defence, nuclear energy, and shipbuilding as areas with potential for cooperation with the US.

($1.00 = KRW1,430.87)