SEOUL-- South Korea said Thursday it has set this year's export target at US$685 billion, little changed from last year's achievement in the face of external challenges.
In 2022, Asia's No. 4 economy saw its outbound shipments rise 6.1 percent on-year to reach a record $684 billion, on the back of strong demand for chips. But it logged a trade deficit of $47.2 billion, the first shortfall since 2008.
The trade ministry said it plans to spend 1.5 trillion won (US$1.1 billion) to support exports and provide trade financing worth 362.5 trillion won to exporters.
South Korea will especially focus on providing customized support to exporters in 12 sectors, including chips and displays.
By sector, the trade ministry said it plans to provide more tax cuts for chipmakers, and support their research projects and foster 150,000 additional experts in the field.
The ministry also said it would help carmakers tap deeper into emerging markets for eco-friendly cars, including Vietnam and the Philippines, while helping them cope with pending issues, such as the U.S. Inflation Reduction Act (IRA).
The IRA provides tax credits to buyers of electric vehicles assembled only in North America, sparking concerns that Korean players could lose ground in the U.S. market.
As for the display sector, the ministry plans to offer more tax cuts by designating the industry as one of the country's key strategic technologies and offer loans worth 900 billion won for their new facility investment.
South Korea will also continue its efforts to tap emerging sectors, including exports of nuclear reactors, as well as defense products, it added.
The trade ministry said the country needs to closely monitor protectionism, as major partners, including the U.S. and the European Union, are reorganizing their supply chains by raising their trade barriers.
The reopening of the Chinese economy, on the other hand, is expected to lend a hand to exports, although uncertainties still remain, including the trade dispute between Washington and Beijing.
South Korea is expected to enjoy strong exports of cars, rechargeable batteries and ships in 2023, although those of chips and displays may further lose ground on weak demand.
Source: Yonhap News Agency