SEOUL- South Korea has prepared several support measures such as an increase in policy financing to boost exports as a key driver of economic growth, the finance ministry said on Monday.
The measures include an increase of five trillion won ($3.62 billion) to a total of 365 trillion won in policy financing for exporting companies and two trillion won worth of more financial support through commercial banks, according to the ministry.
The government will also introduce some regulatory improvements regarding production, shipments and customs, while it will seek ways to help small and medium-sized companies increase exports, it said in a statement.
South Korea’s exports rose for an eighth straight month in May, led by robust chip sales though overall growth in shipments lagged market expectations, data showed on Saturday.
Overseas sales by Asia’s fourth-largest economy rose 11.7 percent year-on-year to $58.15 billion, a 22-month high, slowing from a gain of 13.8 percent in the prior month and undershooting a rise of 14.2 percent tipped in a Reuters survey of economists.
Exports of chips grew for a seventh consecutive month, rising 54.5 percent, along with gains in other IT products such as display panels, computers and wireless communication devices. Exports of automobiles rose 4.8 percent, while ships surged 108.4 percent.
By destination, exports to the United States rose for a 10th month, up 15.6 percent, while China-bound shipments extended gains for a third straight month by rising 7.6 percent to $11.4 billion, a 19-month high. It was the first time in four months that shipments to China had exceeded those to the United States.
“Exports are building a strong upward momentum,” said trade minister Ahn Duk-geun. “The government will provide all-out support for the upward trend to continue through the year-end.”
