Seoul: South Korea's finance minister said Thursday the country will seek to provide financial support to partners in the Middle East facing temporary liquidity shortages due to the prolonged conflict in the region. Finance Minister Koo Yun-cheol announced the plan during a meeting with related ministries on external economic issues, saying South Korea hopes to extend support to close economic partners in the Middle East, according to the Ministry of Finance and Economy.

According to Yonhap News Agency, Koo stated, "As the saying goes, a friend in need is a friend indeed. The government will seek to offer financial support to countries in the Middle East that have maintained close ties with South Korea's economic development and are facing temporary liquidity difficulties due to the prolonged conflict." In detail, the Export-Import Bank of Korea and Korea Trade Insurance Corp. will provide US$3 billion and $6 billion, respectively, to major clients in the Middle East.

South Korea will pursue additional financial support in cooperation with overseas multilateral development banks and export credit agencies, he added. "Uncertainties surrounding the South Korean economy remain high due to tensions in the Middle East and changes in the global trading environment," Koo said. "The government will focus its efforts on rolling out measures that can be felt by the market and businesses."

Koo mentioned that South Korea will pursue closer economic ties with emerging economies, including China, Mongolia, India, and other Asian nations. Asia's fourth-largest economy will also seek to conclude a comprehensive economic partnership agreement (CEPA) with Serbia to help South Korean companies expand their presence in the European market, he added.

Regarding the U.S. administration's trade inquiries into South Korea under the Section 301 investigation, Koo said the government has been proactively conveying Seoul's position to Washington that interests reached under existing agreements should not be undermined.