SEOUL, Jan 20, 2025 (BSS/AFP) - South Korea unveiled a $250 billion support 
package for its exporters Monday, citing the risk of possible tariffs by 
incoming US president Donald Trump.

The announcement comes hours after the central bank slashed its growth 
forecasts, pointing to protracted political uncertainty following President 
Yoon Suk Yeol's declaration of martial law last month.

Yoon plunged the country into political chaos with his December 3 attempt to 
suspend civilian rule, though lawmakers voted it down just six hours later.

He has since been impeached and became the first sitting head of state to be 
arrested in a criminal probe on insurrection charges.

The Ministry of Finance said it was allocating massive new support for the 
country's exporters, including tech giant Samsung and semiconductor leader SK 
hynix, owing to growing risks overseas.

"External uncertainties, such as the inauguration of the new US 
administration, pose concerns about potential adverse effects on the export 
front for businesses," said Kim Dong-joon, deputy director of the Ministry of 
Finance support division.

In response, "the government plans to provide export financing on an 
unprecedented scale of KRW 360 trillion ($248.1 billion) this year", the 
ministry said in a statement.

In part due to the protracted political chaos, South Korea's won has fallen 
to record lows against the dollar in recent weeks.

The ministry said that to mitigate the foreign exchange rate volatility, they 
would boost the budget for exchange rate fluctuation insurance.

The package includes allowing the Export-Import Bank of Korea to provide KRW 
50 trillion over the next five years to industries such as semiconductors and 
batteries, "which have recently faced challenges", the statement said.

Kim added that the government would try "to develop financial support 
measures to help promising industries -- such as defence, nuclear energy and 
shipbuilding -- leverage US-Korea cooperation to expand export and contract 
achievements."

South Korea is a major arms exporter and has signed huge deals for tanks and 
howitzers with NATO members such as Poland, although because of longstanding 
domestic policy, it does not supply weapons directly to Ukraine.

Following the short-lived period of martial law consumer sentiment fell to 
its lowest since the Covid-19 pandemic.

Even after Yoon was impeached, the won plunged against the dollar and the 
country's unemployment rate recently spiked to the highest since 2021.