Comprehensive Financing Support for Exports: Domestic Industrial Competitiveness
In August 2023, the Financial Services Commission announced the Comprehensive Financing Support Measures for Exports to provide additional policy funding and financing support for export-focused businesses. The Support Measures are intended to counter on-going disruptions in the global supply chain; and to boost Korean industrial competitiveness in newly emerging high-tech sectors such as semiconductor and battery industries.
The Measures cover three major policy initiatives:
- Market development, financing, and supply chain support funds: 4.1 trillion KRW
- Domestic industrial competitiveness measures: 18.7 trillion KRW
- Regulatory support for export financing (e.g., extending loan periods, concessionary rates)
Specific measures aimed at boosting domestic industrial competitiveness include:
- Hyper-competitive Major Industries Support provides funding (in the form of preferential rates and increased credit limits) for capital investment, R&D, M&A, and intellectual property acquisition, as well as general funding in the four key competitive areas (KRW 11 trillion)
- Semiconductors (KRW 5 trillion)
- Batteries (KRW 2 trillion)
- Nuclear power (KRW 2 trillion)
- Bio-technology (KRW 2 trillion)
- Public loan guarantees and preferential rates for export-focused SMEs in 8 key industries and 12 emerging export sectors (KRW 1.3 trillion)
- 8 key industries: semiconductors, petrochemicals, shipbuilding, automobiles, petroleum refining, steel, display, and telecommunications
- 12 emerging export sectors: nuclear power, defense industry, construction/plant projects, "green" industries, agriculture and food industries, fisheries, smart farming, information and communications, cultural contents, educational technology, pharmaceuticals and medical equipment, cosmetics
- Special financing support (preferential rates and increased credit limits) for capital investment at export-focused SMEs (KRW 1 trillion)
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