Seoul: The financial regulator announced plans to establish a 1 trillion-won (US$716 million) fund aimed at assisting key industrial sectors adversely affected by U.S. tariffs. This move comes as part of efforts to mitigate the financial strain on marginal firms and those experiencing deteriorating financial conditions due to the tariffs.

According to Yonhap News Agency, the Financial Services Commission (FSC) initially set the fund at 500 billion won but has decided to double it. The fund will receive partial contributions from the private sector and will primarily target the automaking, petrochemicals, and steelmaking industries, among three other segments. The FSC emphasized that over 60 percent of the fund would be dedicated to these sectors.

The FSC highlighted that policy lenders and state-run financial institutions have collectively provided 63 trillion won in financial support to these critical sectors through August, aiming to help them navigate worsening external conditions. Additionally, the country's five major banks have extended 45 trillion won in financial aid to firms grappling with the challenges posed by U.S. tariffs.