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South Korea Aims to Diversify Exports, Back US Investments Under Trade Deal

South Korean state trade agencies have outlined plans to diversify the country's export portfolio, which is currently heavily reliant on semiconductors, automobiles, and shipbuilding. The Korea Trade-Investment Promotion Agency (KOTRA) will establish new teams to help consumer goods gain overseas certification. Concurrently, the Korea Trade Insurance Corp. (K-SURE) will provide massive low-interest loans to support Korean corporate investments in the United States, as pledged under a recent bilateral trade deal. These moves come as the US Supreme Court has yet to rule on the legality of former President Trump's tariffs on trading partners like South Korea.

Key Points: S. Korea to Diversify Exports, Support US Investments

  • Diversify export items beyond semiconductors/autos
  • Support $350 billion in US investments
  • Provide 49 trillion won in low-interest loans
  • Establish financial package for shipbuilders
2 min read

Trade agencies to diversify S. Korean exports, support investments in US

South Korean trade agencies unveil plans to diversify exports beyond semiconductors and support billions in corporate investments in the United States under a bilateral trade deal.

"K-SURE plans to offer low-interest loans worth a combined 49 trillion won (US$33.3 billion) by 2030 - Yonhap news agency"

Seoul, Jan 12

State-run trade agencies pledged on Monday efforts to diversify South Korea's export items and support envisioned corporate investments in the United States under a bilateral trade deal.

The Korea Trade-Investment Promotion Agency (KOTRA) and the Korea Trade Insurance Corp. (K-SURE) shared such plans for 2026 at a policy briefing to the Ministry of Trade, Industry and Resources, reports Yonhap news agency.

KOTRA said it will work to diversify Korea's export items, currently concentrated in the semiconductor, automobile and shipbuilding sectors.

The agency plans to establish 20 new teams to help with overseas certification of consumer goods in their global offices and expand overseas logistics centres for Korean firms.

K-SURE plans to offer low-interest loans worth a combined 49 trillion won (US$33.3 billion) by 2030, including an 8 trillion-won loan program for this year, for companies investing in the U.S.

Under the trade deal sealed in October, Seoul pledged to invest a combined US$350 billion in the U.S., comprising $150 billion for bilateral shipbuilding cooperation and $200 billion for cooperation in advanced industries, in return for tariff cuts.

K-SURE also plans to create a 25 trillion-won financial package for shipbuilders participating in the so-called Make American Shipbuilding Great Again initiative, while establishing a communication channel between the government, K-SURE and major shipbuilders.

Meanwhile, the US Supreme Court did not deliver a ruling on Friday on the legality of President Donald Trump's "reciprocal" tariffs on America's trading partners, including South Korea, despite expectations that the ruling would come this week.

As the court announced a plan earlier this week to convene a session, speculation arose that it could rule on the legality of Trump's use of the International Emergency Economic Powers Act (IEEPA) of 1977 to impose the country-specific tariffs. It does not unveil in advance what ruling it would deliver during a planned session.

On its website, the court only issued one document on a criminal case.

- IANS

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Reader Comments

R
Rohit P
$350 billion is a staggering amount! While it's good for Korea-US ties, it shows how much global trade is becoming about alliances, not just economics. Hope our trade negotiators are taking notes. We need to be proactive, not reactive.
A
Aman W
The part about helping with overseas certification for consumer goods is key. Many Indian MSMEs struggle with exactly this when trying to export. Our agencies could learn from KOTRA's plan to set up dedicated teams abroad.
S
Sarah B
Respectfully, the article buries the lede. The unresolved US Supreme Court case on Trump's tariffs is a huge cloud over this whole deal. If those "reciprocal" tariffs are upheld, it could undermine the benefits for South Korea. Makes the investments look risky.
K
Karthik V
"Make American Shipbuilding Great Again" – the name itself says it all. This is about jobs and politics in the US. Korea is paying a high price for market access. Hope our trade deals focus more on mutual growth and less on one-sided concessions.
N
Nisha Z
Low-interest loans worth 49 trillion won! That's serious government backing. Imagine if Indian exporters, especially in textiles or engineering, had access to such guaranteed, low-cost credit. It could be a game-changer for 'Make in India' for the world.

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