Comprehensive Financing Support for Exports: Domestic Industrial Competitiveness

In August 2023, the Financial Services Commission announced the Comprehensive Financing Support Measures for Exports to provide additional policy funding and financing support for export-focused businesses. The Support Measures are intended to counter on-going disruptions in the global supply chain; and to boost Korean industrial competitiveness in newly emerging high-tech sectors such as semiconductor and battery industries. 

The Measures cover three major policy initiatives:

1. Market development, financing, and supply chain support funds: 4.1 trillion KRW
2. Domestic industrial competitiveness measures: 18.7 trillion KRW
3. Regulatory support for export financing (e.g., extending loan periods, concessionary rates)

Specific measures aimed at boosting domestic industrial competitiveness include:

• Hyper-competitive Major Industries Support provides funding (in the form of preferential rates and increased credit limits) for capital investment, R&D, M&A, and intellectual property acquisition, as well as general funding in the four key competitive areas (KRW 11 trillion)
  • Semiconductors (KRW 5 trillion)
  • Batteries (KRW 2 trillion)
  • Nuclear power (KRW 2 trillion)
  • Bio-technology (KRW 2 trillion)
• Public loan guarantees and preferential rates for export-focused SMEs in 8 key industries and 12 emerging export sectors (KRW 1.3 trillion)
  • 8 key industries: semiconductors, petrochemicals, shipbuilding, automobiles, petroleum refining, steel, display, and telecommunications
  • 12 emerging export sectors: nuclear power, defense industry, construction/plant projects, "green" industries, agriculture and food industries, fisheries, smart farming, information and communications, cultural contents, educational technology, pharmaceuticals and medical equipment, cosmetics
• Special financing support (preferential rates and increased credit limits) for capital investment at export-focused SMEs (KRW 1 trillion)

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