Seoul: The government on Monday announced plans to provide extensive financial support to bolster exports this year, as uncertainties in the global trade environment are expected to intensify with the inauguration of U.S. President-elect Donald Trump. Trump is set to begin his second presidential term on Monday (U.S. time), heightening concerns about a potential rise in global protectionism and its impact on South Korea's export-driven economy.

According to Yonhap News Agency, the government aims to address these challenges by implementing a comprehensive export financing strategy. "With the U.S. administration's policy shifts and other global factors increasing external uncertainties, there are growing concerns over potential challenges for businesses in the export sector," said Kim Dong-joon, a senior finance ministry official in charge of a government task force on exports. The task force, launched in October, consists of senior officials from the finance and industry ministries and other relevant financial agencies to evaluate export financing and develop effective support measures.

Trump's proposal to impose a 25 percent tariff on all products from Mexico and Canada, along with an additional 10 percent tariff on goods from China, has raised concerns among South Korean companies. To mitigate these anticipated challenges, the government plans to provide export financing on an unprecedented scale, amounting to 360 trillion won (US$247 billion) in 2025 alone, as reported by the finance ministry.

In addition, the budget for exchange rate insurance will increase from 1.2 trillion won to 1.4 trillion won in 2025 in response to the weak Korean won. Funding for overseas trade fairs and trade delegations will also rise from 2.1 trillion won to 2.9 trillion won, ensuring better support for South Korean businesses in the global market.