S. Korea considering new corporate fund program amid Trump uncertainty

The financial regulator said Wednesday it is working to create a new fund to help boost industrial competitiveness amid concerns about the impact of the Donald Trump government’s policy measures.

The Financial Services Commission (FSC) has been in talks with relevant ministries about setting up the new fund program under the Korea Development Bank (KDB) to extend support to companies bracing for heated competition in accordance with policy changes under the new U.S. government, according to FSC chief Kim Byoung-hwan.

“There have been concerns about our industrial competitiveness regarding the new Trump administration. We will finalize and implement the supportive scheme at an early date,” Kim told a press briefing in Seoul.

Under the envisioned scheme, the government would make a policy financing-based investment in companies through a special purpose company when they launch new projects or build new facilities, among other cases.

“Making an investment in companies is expected to help ease financial restraints and to have a greater cost-saving effect than extending low-interest loans,” Kim said.

President Trump’s return to the White House is expected to have a significant impact on the export-driven South Korean economy, as he has warned of protectionist policies, decoupling from China and other drastic policy shifts across the board.