SEOUL, August 16 (Reuters) – South Korea will extend financial support to exporting companies by about 50% this year, the financial regulator said on Wednesday, to boost exports. in the context of persistently weak demand.
The Financial Services Commission (FSC) said it will provide financial assistance totaling 23 trillion won ($17.2 billion) to exporters through public and private banks from May. 9, along with other measures to ease trade finance constraints.
The FSC said in a statement that 41 trillion won worth of financial support has been provided through policy funds so far this year.
Specific measures include extending credit and reducing borrowing costs for companies entering new markets, bidding for overseas project orders and investing in key industries such as semiconductors , rechargeable batteries, biopharmaceuticals and nuclear energy.
The FSC said the measures are intended to support export recovery and improve the medium and long-term competitiveness of exporting companies, citing the difficult conditions they are facing due to supply chains. weak response and stiff competition on advanced technology with high interest rates. .
South Korea’s July exports fell for the 10th straight month and at the sharpest pace in more than three years, stoking fears that the recession could last longer than expected amid weak demand.
South Korea’s economic growth accelerated in the second quarter, after averting a recession in the first quarter, but largely thanks to an improvement in net trade as imports fell more than exports, while Consumer and business spending weakened.
($1 = 1,336,4600 won)
Report by Jihoon Lee; Edited by Jacqueline Wong
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