Gov't rolls out plans for supporting companies hit by U.S. tariffs

And the Lee administration has announced a framework of financial assistance to aid exporters seeking to navigate higher U.S. tariffs.

Our correspondent Kim Do-yeon has details.

The South Korean government is expanding its financial support to companies hit by U.S. tariffs.

At an economic ministerial meeting on Wednesday, officials announced a comprehensive support package for these companies, including 13.6 trillion won or about 10 billion U.S. dollars in emergency management funds.

A record 270 trillion won or 193 billion dollars in trade insurance and credit will also be available to support exporters.

"The real race toward economic recovery starts now. The government will sprint without rest. We will respond flawlessly to global trade risks while mobilizing all policy capabilities to push forward with projects to lead the AI and super-innovation economy."

In next year's budget proposal, trade issues and export support has been increased to 4.3 trillion won, or just over 3 billion dollars.

For sectors affected by tariffs, interest rates on operational funds will be cut further, and lending limits will be raised tenfold.

Hard-hit industries like steel and aluminum will receive specialized support, including 570 billion won, or just over 400 million dollars in dedicated financing and emergency allocated tariffs on core raw materials.

The Industry Ministry will spearhead the government's on-the-ground response, coordinating across twelve ministries.

"Today we have prepared tangible support measures with twelve ministries based on three principles—first, mobilizing all available policy tools; second, an all-out, whole-of-government response; and third, a focus on the needs of companies."

This support is critical for the nation's small and medium-sized enterprises as well.

A recent government survey found that nearly 63 percent of these companies expect the tariffs to negatively impact their exports.

"Export-oriented SMEs expressed strong on-the-ground need for support with logistics costs, policy funds, detailed information, and export market diversification. Reflecting these voices, we have prepared support measures for SMEs in response to the U.S. reciprocal tariffs."

Meanwhile, with the Chuseok holiday approaching, the government also announced plans to ease the burden on households.

The Deputy Prime Minister stated that "Chuseok Livelihood Stability Measures" will be announced soon.

Additionally, a second round of "Livelihood Recovery Consumption Coupons" will be distributed starting from September 22nd.

Kim Do-yeon, Arirang News.