S. Korea to expand trade financing, support to bolster exports

S Korea-exports

S. Korea to expand trade financing, support to bolster exports

By Kang Yoon-seung

SEOUL, March 13 (Yonhap) -- South Korea plans to provide up to 364.5 trillion won (US$275.5 billion) in trade financing to exporters this year in line with efforts to bolster outbound shipments amid a prolonged trade deficit, the finance ministry said Monday.

The amount marks a 2 trillion-won rise from the earlier target for 2023, according to the Ministry of Economy and Finance. Asia's No. 4 economy has suffered a trade deficit for 11 straight months.

The ministry will focus on supporting small and midsized exporters with the increased amount, it added.

"This year, exports are facing a bumpy road due to the global economic slowdown and a slump in the chip industry," the finance ministry said in a statement, although it suggested that overseas sales may rebound in the second half of the year.

Revitalizing exports is the top priority for the country's policy, as they are key to the economic recovery, it added.

South Korea earlier set this year's exports target at $685 billion, little changed from last year's $683.7 billion.

In line with such efforts, the ministry added that it plans to review providing more tax benefits to the eco-friendly automobile industry to speed up investment in self-driving and hydrogen technologies.

South Korea also seeks to increase its support for the shipbuilders' refund guarantees (RG), it added.

An RG is a form of security for ship purchasers, who usually make advance payments on an order. If the ordered vessel cannot be delivered, a bank that has taken on the guarantee of the shipbuilder would make the refund.

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