As Donald Trump prepares for his second presidency, South Korea has announced a substantial pledge of 360 trillion won (approximately $247.74 billion) in financing support for exporters. This move aims to alleviate potential negative impacts from the anticipated changes in U.S. trade policies, particularly those affecting core industries such as semiconductors and rechargeable batteries. According to a statement from the SCMP, the South Korean finance ministry acknowledges growing concerns regarding uncertainty under the incoming U.S. administration and its effect on local exports.

The government plans to enhance insurance support to protect against foreign exchange volatility, increasing funding from 1.2 trillion won in 2023 to 1.4 trillion won this year. Additionally, spending on government-backed initiatives, including trade fairs and delegations, will rise from 2.1 trillion won to 2.9 trillion won (VOA News).

Trump has publicly committed to imposing stiff tariffs on major trading partners, which raises alarms for South Korean industries operating in affected regions. Despite achieving a remarkable trade surplus of $55.7 billion with the U.S. last year, economists remain wary of the Trump administration's potential introduction of trade policies targeting South Korea. The Korea International Trade Association forecasts that export growth may decelerate to 1.8% this year, in stark contrast to the 8.1% surge experienced last year.

As South Korea navigates the evolving landscape of international trade relations, the government's proactive measures reflect its commitment to supporting exporters facing an unpredictable economic environment.