Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol announced plans to provide a total of $60 million in financial aid to Middle Eastern countries facing liquidity challenges due to the prolonged conflict in the region. He stated that the government will respond calmly and consistently to the U.S. Section 301 investigation into trade practices.
During the 268th Foreign Economic Ministers' Meeting held at the Government Seoul Building on May 21, Koo noted, "The uncertainty surrounding our economy remains significant due to tensions in the Middle East and changes in the global trade environment. The government will focus its efforts on responses that the market and businesses can feel."
The government plans to offer $30 million each through the Export-Import Bank and the Korea Trade Insurance Corporation to major contractors in the Middle East experiencing temporary liquidity crises due to the ongoing war.
Koo explained, "As the saying goes, 'A friend in need is a friend indeed,' we are pursuing financial support for countries that have had close ties with the development of the Korean economy."
The government also discussed measures to strengthen supply chain responses amid the resurgence of risks in the Middle East. Plans include supporting domestic production linked to production incentive tax systems and subsidies, as well as establishing new stockpiles of essential goods for industry and daily life. For items that cannot be produced domestically, the government will secure overseas production bases and diversify import sources. The goal is to reduce dependence on specific countries for economic security items to below 50% by 2030.
Koo emphasized, "It is now time to move beyond a simple efficiency-centered structure and strategically invest in enhancing supply chain resilience."
He added that the government will actively consult with the European Union to minimize industry damage following the EU's recent decision to reduce steel import quotas and strengthen tariffs on excess quantities.
Regarding the U.S. Section 301 investigation, Koo stated that the government aims to ensure that the existing balance of interests between South Korea and the U.S. is not disrupted. Previously, the government has articulated its position through written comments and public hearings related to investigations into forced labor and overproduction by the U.S.
Koo affirmed, "We will calmly respond by actively explaining our position in upcoming bilateral consultations with the U.S. government to ensure that the previously agreed-upon balance of interests is maintained."
Additionally, the meeting reviewed the progress of the Comprehensive Economic Partnership Agreement (CEPA) with Serbia. The government plans to accelerate negotiations with China, India, and ASEAN countries while swiftly concluding the agreement with Serbia to strengthen its foothold in Europe.
* This article has been translated by AI.
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