Korean government goes all-out to support ailing manufacturing sector

Korean government goes all-out to support ailing manufacturing sector [Photo by MK DB]

The South Korean government has rolled its sleeves to help breathe life into the country’s manufacturing sector that has been falling behind in exports and investments.

In a meeting on Friday, the Ministry of Trade, Industry and Energy discussed measures to expand exports and investments in the manufacturing sector.

The move comes as outlook for chips, Korea’s largest export item, remains dim in the first half of this year due to falling prices. Facility investment has also declined in the fourth quarter.

Korea’s outbound shipments have declined for four straight months year-on-year, resulting to trade deficits for an 11th month.

Korea suffered the worst-ever trade deficit of $12.7 billion in January. The figure exceeded $10 billion for the first time since figures were compiled in 1956.

The industry ministry plans to spend two-thirds of its entire annual budget on export support in the first half of this year. It plans to offer a record 360 trillion won ($292.9 billion) in trade financing and simplify procedures for exporters to receive overseas certifications. It will also carry out efforts to provide 81 trillion won in policy funds this year for investments in research and development and manufacturing facilities and work with the National Assembly for the swift passing of bills that offer more tax grants on national strategic technologies.