Electronics

The South Korean government recently jointly released the Strategy for Enhancing Export Competitiveness, which significantly enhanced the government's financing support for the export of international trade enterprises, focused on controlling the three major risk factors of international trade, and increased policy support for technology research and development of major export industries to ensure the leading position of core technologies.

According to the latest data from the Ministry of Industry, Trade and Resources of South Korea, South Korea's monthly trade deficit reached 9.47 billion US dollars in August, the highest in 66 years according to relevant statistics. Influenced by the high international energy prices driving up import costs, South Korea's imports surged 28.2% year-on-year in August; Exports were dragged down by weakening global demand for semiconductors, falling prices and the high base effect of exports last year. The growth rate in August was only 6.6%. South Korea's international trade deficit has been maintained for five consecutive months, which is very rare in historical data.

In order to properly deal with the difficulties encountered by the current export, the Ministry of Industry, Commerce and Resources of the Republic of Korea, together with the Ministry of Planning and Finance, the Ministry of Small and Medium Risk Enterprises, the Ministry of Marine Fisheries, the Customs Office and other departments, jointly issued the Strategy for Enhancing Export Competitiveness.

Financial support is the core of the strategy. The South Korean government will raise the annual limit of trade insurance coverage to ease the difficulties faced by export enterprises in financing. The government will provide trade and financial support of up to 351 trillion won. In order to ease the burden on enterprises caused by the rising prices of raw materials and the sharp drop of exchange rate, the government requires Hyundai Merchant Shipping (HMM), the largest ocean shipping company in South Korea, to implement dual currency settlement in US dollars and Korean dollars from September to the end of this year, targeting imported goods. When the freight is priced in Korean dollars, the fixed exchange rate of 1 dollar to 1186.65 Korean dollars, the average exchange rate of the last two years, will apply.

Small and medium-sized enterprises and backbone enterprises are the focus of this export support policy. First of all, the amount of international trade insurance guarantee for small and medium-sized enterprises and core enterprises will be greatly expanded from the original annual 5 billion won to 7 billion won for small and medium-sized enterprises and 10 billion won for core enterprises. Secondly, in the second half of the year, the government will support 750 small and medium-sized and backbone export enterprises with additional logistics fees, and provide 60 billion won of special low interest financing for small and medium-sized enterprises with operating difficulties. In addition, the government will support small and medium-sized enterprises to obtain overseas certification fees, and hold a large-scale online and offline contact (O2O) export fair "Boom up Export to South Korea" in November this year.

At the same time, the Korean government regards the decline in exports to China, the decline in semiconductor prices and the soaring energy prices as the three major risks faced by South Korea's exports, and strengthens control and response. Specifically, in order to restore the vitality of exports to China, the government will strive to promote the integration of information and communication technologies and deepen cooperation in new materials, key components, technical equipment, services and other strategic areas where China and South Korea are vigorously developing. In addition, the government, in combination with China's "dual carbon" policy, provides support for the export of green industries such as smart cities and renewable energy. Taking the opportunity of the 30th anniversary of the establishment of diplomatic relations between China and the ROK, the two countries will hold a meeting of China ROK ministers of industry and trade in the second half of the year, and regularly hold a meeting of China ROK economic chiefs.

In terms of semiconductor, the government will fully support enterprise investment, cultivate 150000 talents within 10 years, and strengthen support for system semiconductor leading technology. We will support fabless factories (semiconductor design) and materials and parts enterprises to participate in global exhibitions, hold business fairs, etc., and strengthen local marketing. The government will also expand export credit guarantee for small and medium-sized international trade enterprises in semiconductor raw materials, parts and equipment, and expand short-term international trade financial support such as export insurance preferences.

In terms of energy, the government plans to use oil, biofuels and other fuels to replace the soaring price of LNG to reduce energy imports. In order to improve energy efficiency, the government will also discuss plans to add energy efficiency investment, commercial facilities, etc. to the "new growth, original technology tax relief object".

In terms of ensuring the leading position of the main export industries, by 2026, the Korean government will provide R&D support of about 3.7 trillion won for green and unmanned ships, new energy vehicles, system chips and other industries, and strive to cultivate 140000 professionals by 2026.

Li Changyang, Minister of Industry, Trade and Resources of the Republic of Korea, said that "exports have always been a solid pillar of South Korea's economic growth. South Korea will strive to make this strategy of strengthening export competitiveness contribute to overcoming the recent domestic and foreign crises, and hopes that the government and the people can work together".