S. Korean gov't to provide wide ranging support for companies hit by tariff threats

Meanwhile given the looming threat of TOUGHER Trump tariffs the government here has vowed a support framework to better assist Korean exporters.

Our correspondent Lee Soo-jin has more.

The South Korean government on Tuesday announced plans to offer a broad range of support services to companies affected by U.S. President Trump's recent tariff threats and is also working to diversify its export markets.

This comes amid growing concerns about the potential impact of tariffs on exports, especially given their critical role in driving Korea's economic growth.

"Last year, exports supported our struggling economy. They grew by 8-point-1 percent annually to a record high, leading Korea to become the world’s sixth-largest exporter. However, policy shifts from the new U.S. administration have made this year’s outlook more uncertain than ever."

The remarks were made during an export strategy meeting, where the Acting President announced that the government would provide "export vouchers" for small and medium-sized enterprises.

With these vouchers, companies can receive consultations in various fields, including legal, taxation, marketing, and certifications.

And 90 percent of the 240 billion won, or around 166 million U.S. dollar budget for the vouchers will be allocated in the first half of the year.

The government also announced that it will offer tax benefits to companies relocating to Korea due to shifts in the global trade environment, even before they have fully scaled down their overseas operations.

As part of further efforts to provide financial relief,.. the government will provide short-term liquidity for companies hit by tariff threats, by supplying around 254 billion dollars in trade financing this year, a record-high amount.

The country's export market is also expected to become more diversified in the future, as the government is aiming to expand into countries such as Mexico, Mexico, South Africa, Vietnam, and India by setting up five new export centers overseas.

Lee Soo-jin, Arirang News.