South Korea Plans to Support Auto Sector with $2 Billion Following US TariffsSeoul, 6 Apr (ONA) — South Korean officials announced that
the government intends to allocate an emergency aid package worth 3
trillion won (around $2 billion) to support the local automotive
industry. The move aims to mitigate the impact of the new 25% US
tariffs imposed last week by the administration of President Donald
Trump.

According to South Korea’s Yonhap News Agency, the South Korean
government is expected to approve the emergency funding plan during a
ministerial meeting later this week. The plan will be implemented
through state financial institutions, including the Korea Development
Bank.

An official from the Ministry of Economy and Finance said the
package will be distributed through the Korea Development Bank’s
existing loan programs. He noted that the final figure is still under
review.

In parallel, the government announced broader financing programs,
including up to 248 trillion won in 2025 through state lending
institutions to help companies cope with the global economic slowdown
and restructure industrial sectors.

The South Korean government also plans to establish a strategic fund
worth 50 trillion won over the next five years to support the
development of future mobility technologies, amid growing economic
uncertainty following the start of President Trump’s second term.

It is worth noting that the automotive sector is a key pillar of
South Korea’s economy. In 2024, the country’s car exports to the
United States amounted to approximately $34.7 billion, representing
half of South Korea’s total automotive exports to global markets.— Ends/Khalid