The South Korean Ministry of Trade, Industry and Energy has announced a KRW 570 billion ($410.39 million) support package to help the country’s steel, aluminum and downstream derivatives industries offset the impact of US tariffs of up to 50 percent, according to media reports.
Financial support measures
The package includes a new interest subsidy program designed to reduce borrowing costs. Small and medium-sized enterprises (SMEs) will gain access to KRW 200 billion ($143.9 million) in low-interest loans through the Korea International Trade Association (KITA) at preferential rates between 1.5 percent and 2.0 percent.
In addition, the government will expand trade insurance to a record-high KRW 270 trillion ($194.3 billion).
Export supply-chain guarantee
A new KRW 400 billion ($287.84 million) “Steel Export Supply-Chain Strengthening Guarantee” will be launched, backed by contributions from large corporations and financial institutions. The government will also expand companies’ access to the KRW 13.6 trillion ($9.79 billion) emergency fund created earlier in 2025 to support industries hit by tariffs.
Boosting domestic demand and trade defense
Beyond financial measures, the government is also working to stimulate domestic demand for key export items such as automobiles, home appliances and steel, in order to offset declining overseas sales.
Meanwhile, the ministry emphasized its commitment to strengthening defenses against unfair trade practices including circumvention of tariffs and dumping, while also promoting diversification of South Korea’s export portfolio both in terms of products and destinations.