Electronics

Several departments of the South Korean government recently jointly issued 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 in the main export industries to ensure the leading position of core technologies.

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

In order to properly cope with the current difficulties in export, the Ministry of Industry, Trade 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 and 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 to ease the difficulties faced by export enterprises in financing. The government will provide trade financial support of 351 trillion won at most. In order to alleviate the burden of rising raw material prices and sharp fall in exchange rates on enterprises, the government required 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, with imported goods as the object. When the freight is priced in US dollars in Korean won, the fixed exchange rate of the average exchange rate of US $1 to 1186.65 won in the last two years will apply.

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

At the same time, the South Korean government regards the decline in exports to China, the decline in semiconductor prices and the sharp rise in energy prices as the three major risks faced by South Korean 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 strategic areas vigorously developed by China and South Korea, such as new materials, key parts, technical equipment, and service industries. In addition, the government provides support for the export of smart cities, renewable energy and other green industries in combination with China's "double carbon" policy. Taking the 30th anniversary of the establishment of diplomatic relations between China and the ROK as an opportunity, the two countries will hold a meeting of the Ministers of Industry and Trade of China and the ROK in the second half of the year, and regularly hold a meeting of the Economic Ministers of China and the ROK.

In terms of semiconductors, the government will fully support the investment of enterprises, train 150000 talents within 10 years, and strengthen the support for the leading technology of system semiconductors. Take fabless factories (semiconductor design) and materials and parts enterprises as the target, support them to participate in global exhibitions, and hold business fairs to strengthen local marketing. The government will also expand the 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 replace the soaring price of liquefied natural gas with oil, biofuels and other fuels to reduce energy imports. In order to improve energy efficiency, the government will also discuss the plan of adding energy efficiency investment, commercial facilities, etc. as "new growth, original technology tax reduction targets".

In terms of ensuring the leading position of the main export industries, by 2026, the Korean government will provide about 3.7 trillion won of research and development support 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 the Ministry of Industry, Trade and Resources of the Republic of Korea, said that "export has always been a solid pillar of the economic growth of the Republic of Korea. The Republic of Korea will strive to make this export competitiveness strengthening strategy contribute to overcoming the recent domestic and foreign crises, and hope that the government and the people can work together".