The EximBank of Korea and the Korea Trade Insurance Corporation will each provide $3 billion to major project clients in the Middle East

The South Korean government is pushing ahead with financial support measures for Middle Eastern countries facing temporary liquidity difficulties caused by war.

Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol said during a ministerial meeting on external economic affairs held at the Government Complex Seoul on May 21 that “a friend in need is a friend indeed,” explaining that the government would selectively support countries that have maintained close ties with South Korea’s economic development.

The Export-Import Bank of Korea and the Korea Trade Insurance Corporation will each provide $3 billion in advance financing, including emergency working capital support, to major project clients in the Middle East, bringing the total support package to $6 billion. The government will also coordinate support with policy finance institutions, overseas export credit agencies and multilateral development banks.

The meeting also covered measures to improve supply chain structures, the current status of and response plans to the European Union’s new steel trade measures, recent developments and strategies involving trade agreements, and consultations with the United States regarding Section 301 of the Trade Act.

Koo said that rapidly shifting geopolitical conditions have once again exposed vulnerabilities in global supply chains. He added that the government will support domestic production by linking production incentives, tax benefits and subsidies based on the characteristics of individual items and supply chain structures, while also considering new stockpiles of industrial and essential consumer goods.

For items that are difficult to produce or stockpile domestically, the government plans to secure overseas production bases and diversify import channels to reduce dependence on specific countries. Koo emphasized that South Korea aims to lower dependence on any single country for economic security items to below 50 percent by 2030.

Koo also said the government would prioritize national interests in active consultations with the European Union after the bloc recently announced plans to sharply reduce steel import quotas and strengthen tariffs on excess volumes. He pledged close communication with the industry throughout the process.

The government will also accelerate trade agreement negotiations with Southwest Asian and ASEAN nations, including China, Mongolia, and India, to expand its trade agreement network and establish stable export conditions.

In particular, the government plans to seek an early conclusion of a Comprehensive Economic Partnership Agreement with Serbia, which possesses a strong manufacturing base in sectors such as auto parts and is regarded as a strategic gateway to the European market.

will seek an early conclusion of a Comprehensive Economic Partnership Agreement with Serbia, which possesses a core manufacturing base in areas like automotive parts and is considered a strategic gateway into the European market.

Regarding the U.S. Section 301 investigation, Koo said the government would respond calmly through upcoming bilateral consultations with the U.S. government and actively explain South Korea’s position that the balance of benefits agreed upon previously should not be undermined.

The government has so far submitted written opinions and attended public hearings to explain South Korea’s position in response to the U.S. launch of a Section 301 investigation into forced labor and overproduction involving major trading partners, including South Korea.