Seoul: The government of South Korea is set to invest at least 4.5 trillion won (US$3.06 billion) to secure logistics hubs overseas, aiming to bolster the export operations of South Korean companies.
According to Yonhap News Agency, the Ministry of Oceans and Fisheries announced the plan during a meeting of ministers focused on industrial competitiveness, emphasizing the critical need for more investment in overseas logistics centers to aid South Korean exporters. Currently, only 8.8 percent of overseas logistics centers operated by 15 major domestic logistics firms are of Korean ownership. Additionally, Korean companies hold stakes in just seven overseas container terminals.
The ministry aims to enhance the country's logistics competitiveness by increasing the number of government-backed overseas logistics bases from nine to 40 by 2030. These bases will be established in 11 countries with significant trade volumes with Korea, such as the United States, Canada, Mexico, Vietnam, Indonesia, and Germany. Furthermore, the ministry plans to collaborate with shipping firms and ocean-related authorities to secure stakes in overseas container and bulk terminals, focusing on strategic cargo like energy and grains, while doubling the government's logistics supply chain investment fund to 2 trillion won.
In parallel, the finance ministry announced the creation of a 150 billion-won special fund to support Phase 3 clinical trials of Korean biopharmaceutical companies and plans to nurture 110,000 talents for the biohealth sector by 2027. Additionally, there are plans to expand support for cultural content creation utilizing artificial intelligence (AI) with a 430 billion-won fund.
Finance Minister Koo Yun-cheol, who chaired the meeting, commented on the economic situation, stating, "Despite challenges following the launch of the new administration, such as U.S. tariff negotiations and sluggish domestic demand, our economy has turned toward a recovery." He added that the government will concentrate efforts on helping the Korean economy achieve a full-fledged leap forward, aiming for a rebound in the country's potential growth rate by 2026.