Gov’t to ‘swiftly’ implement 25 tln-won financing scheme for export firms

The government will work to “swiftly” implement 25 trillion won (US$17.5 billion) of policy financing for export companies following the planned passage of an extra budget bill by the National Assembly, the finance ministry said Thursday.

In a pan-government meeting on trade issues, the Ministry of Economy and Finance asked related agencies to thoroughly prepare for the execution of the extra budget bill, expected to be endorsed by the Assembly later in the day.

Earlier in the day, the rival parties agreed to pass a 13.8 trillion-won extra budget aimed at revitalizing the economy and helping disaster response.

With the envisioned budget, the government plans to provide some 25 trillion won worth of liquidity support to local companies hit by U.S. tariffs.

Under the plan, the state-run Export-Import Bank of Korea will offer 10 trillion won in trade financing to local exporters, and the Korea Trade Insurance Corp. will provide 2.4 trillion won worth of special trade insurance to small and medium-sized enterprises (SMEs), according to the ministry.

The ministry said the government will continue its efforts to assess trade risks involving local industries and stabilize supply chains.

The government will also devise additional support measures for SMEs vulnerable to uncertainties in the global trade market and announce them soon, the ministry added.