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South Korea Unveils Export Support Blitz as $350 Billion U.S. Pledge Moves to Case-by-Case Funding

Officials signal a policy-bank led approach with execution details still unsettled.

Overview

  • Vice Finance Minister Lee Hyoung-il said the $350 billion commitment is a ceiling to be drawn down case by case through policy financial institutions, with authorities monitoring FX and bond markets.
  • The government announced 13.6 trillion won in emergency liquidity and lifted trade insurance to a record 270 trillion won to help companies manage cash flow under new U.S. tariffs.
  • Tariff-hit metals supply chains will receive up to 570 billion won this year through interest subsidies, low-rate loans and a new 400 billion won trade finance product.
  • Major financial groups and policy banks pledged more than 267 trillion won in loans, guarantees and fee relief through next year to support exporters.
  • State lenders will expand crisis lending, with KDB raising exporter loan limits tenfold and Eximbank widening eligibility and cutting rates by up to 2 percentage points, alongside a planned 1 trillion won restructuring fund.