13.6 Trillion Won in Emergency Management Funds
Lower Interest Rates and Expanded Loan Limits
570 Billion Won in Specialized Support for Steel and Aluminum
Global Market Diversification
Accelerating FTAs
Strengthening Competitiveness of K-Content and Key Industries
Following the conclusion of tariff negotiations with the United States, the government has decided to implement a "follow-up support package" to minimize damage. This package includes 13.6 trillion won in emergency management funds, 270 trillion won in trade insurance support, and 570 billion won in specialized support for the steel and aluminum industries.
On September 3, the Ministry of Trade, Industry and Energy announced this joint response plan with relevant ministries during the Economic Ministers' Meeting and the Industrial Competitiveness Enhancement Ministers' Meeting. The ministry stated, "Although the reciprocal tariff, initially set at 25%, has been reduced to 15%, it may still act as a downward pressure on our exports," adding, "We are implementing extraordinary measures to mitigate the impact of tariffs and open new export channels."
13.6 Trillion Won in Emergency Management Funds... Lower Interest Rates and Expanded Loan Limits
To support companies affected by tariffs, the government will inject a total of 13.6 trillion won in emergency management funds. Korea Development Bank will increase the loan limit for its "low-interest operating funds for tariff-affected industries" from 3 billion won to 30 billion won for small businesses, and from 5 billion won to 50 billion won for mid-sized companies-a tenfold increase. Interest rates will be lowered by an additional 0.3 percentage points. Export-Import Bank of Korea will relax the eligible credit rating from p5+ to p4 or lower, and the Korea SMEs and Startups Agency will expand emergency funding to include the copper industry. Korea Credit Guarantee Fund and Korea Technology Finance Corporation will swiftly provide 4.2 trillion won in "special crisis guarantee" support.
To help export companies secure liquidity, Korea Trade Insurance Corporation will provide a record 270 trillion won in support. The 60% discount on insurance and guarantee fees, previously limited to tariffed items, will be expanded to all industries. A new "special guarantee limit increase program" will raise loan guarantee limits across the board by 0.5 times. For companies whose financial structure has been weakened by tariffs, requirements will be eased and limits raised through special reviews. U.S. local subsidiaries will be eligible for new guarantees for mid- to long-term operating funds, helping them cope with declining sales and rising raw material costs.
The government will also supply export vouchers worth approximately 420 billion won through next year and double the logistics support limit from 30 million won to 60 million won. Small businesses will receive a 90% discount on usage fees at 55 joint logistics centers in the United States, and a dedicated logistics center for cosmetics will be newly established. The "tariff response voucher" limit will be increased from 120 million won to 150 million won, and a fast-track system will reduce the issuance period from 45 days to 3 days. In addition, the "Tariff Response 119" service will handle U.S. customs pre-screening, including HS code and country-of-origin determination. Emergency quota tariffs will be applied to core steel raw materials, and tax support will be provided in parallel.
Steel products are piled up at the export yard of Pyeongtaek Port in Gyeonggi Province on August 8, following U.S. President Donald Trump's announcement to impose a 25% reciprocal tariff on all imports from Korea starting August 1. July 8, 2025. Photo by Kang Jinhyung
570 Billion Won in Specialized Support for Steel and Aluminum
A total of 570 billion won in special support will be provided for steel, aluminum, and related derivative products. Through interest subsidy programs, small businesses will see interest rates reduced by 2 percentage points and mid-sized companies by 1.5 percentage points, with an expected loan support effect of 150 billion won. Korea International Trade Association will arrange 20 billion won in emergency low-interest loans for affected companies, offering temporary support from September to December. In addition, a new "steel export supply chain reinforcement guarantee product" will be created with funding from large corporations and financial institutions. Specialized consulting and casebooks for calculating and verifying content value will be provided to help small businesses overcome obstacles.
Decreased overseas demand will be offset by boosting domestic demand. Conversion subsidies will be provided for the purchase of electric vehicles after disposing of internal combustion engine vehicles, and a high-efficiency home appliance purchase rebate policy will be implemented. The use of domestic steel will be promoted in construction, civil engineering, and offshore wind power projects, and an additional 2.2 GW of energy storage systems (ESS) will be supplied by 2029.
To prevent illegal circumvention exports and dumping, the Korea Customs Service's "Trade Security Special Investigation Team" will lead intensive crackdowns. Submission of steel quality inspection certificates (MTC) will be made mandatory, the scope of circumvention dumping investigations will be expanded, and amendments to the "Trade Response Act" will be pursued. To promote domestic investment, a 100 trillion won "National Growth Fund" will be established, and investment in advanced industries will be expanded through materials, parts, and equipment investment support funds and supply chain stabilization funds. Efforts will also be made to attract foreign-invested companies and increase the relocation subsidy for companies returning from overseas after tariff damage from 57% to 75%.
Global Market Diversification... Accelerating FTAs
To compensate for the decline in exports to the United States, the government will focus on exploring emerging markets. The number of companies eligible for support at overseas exhibitions, trade missions, and Korean Wave expos in the second half of the year will be expanded to 3,000. During "Boom-Up Korea Week" in October, held in conjunction with the Asia-Pacific Economic Cooperation (APEC), the government aims to attract a record 2,000 buyers. The number of regionally specialized exhibitions will increase from 18 to 68.
The government will also accelerate the expansion of free trade agreements (FTAs). Early conclusion and implementation of FTAs with major countries in the Association of Southeast Asian Nations (ASEAN), the Middle East, and Central and South America will be pursued. Comprehensive Economic Partnership Agreement (CEPA) negotiations will be launched with countries such as Bangladesh and Pakistan. The plan also includes consideration of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), maximizing utilization of the Regional Comprehensive Economic Partnership (RCEP), and increasing FTA utilization rates among small and medium-sized businesses. Companies entering new markets will receive special guarantees of 100 million won based solely on contracts, and the reimbursement limit for overseas certification failures will be raised to 70%. An artificial intelligence (AI)-based system for responding to technical regulations will also be established.
Strengthening Competitiveness of K-Content and Key Industries
The government will also foster promising export industries by leveraging the Korean Wave. The number of overseas business centers for K-content will be increased to 30, and financial support for webtoon and game production will be strengthened. For K-food, five additional items-including yellowtail and chicken-will be added to the list of FTA origin-simplified items. For K-beauty, a 40 billion won fund will be created to support entry into overseas online and offline distribution networks.
To strengthen the competitiveness of key industries, the government will focus on breakthrough research and development (R&D) in areas such as AI autonomous driving technology, on-device AI semiconductors, all-solid-state and lithium metal batteries, AI convergence biofoundries, and hydrogen-based steelmaking. Infrastructure will be established for semiconductor clusters and specialized complexes, and mid- to long-term strategies such as the "AI Future Vehicle Competitiveness Enhancement Plan," "Steel Industry Advancement Plan," and "Secondary Battery Competitiveness Enhancement Plan" will be developed.
Minister of Trade, Industry and Energy Ahn Dukgeun stated, "We will swiftly implement the measures jointly prepared by 13 ministries so that the effects can be felt in the field," adding, "We will continue to identify and provide the support companies need through ongoing roundtable meetings and export field support teams."
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