The South Korean government will provide 25 trillion won (around 17.58 billion U.S. dollars) in liquidity to help domestic exporters. This support comes in response to US tariff plans that may impact these exporters, as stated in an extra budget bill released on Friday.

The Ministry of Finance says the government plans to increase the special policy fund by 1.5 trillion won. This will raise the total to 25 trillion won. The goal is to prevent a corporate liquidity crisis due to rising global trade uncertainty.

The South Korean government announced details of the 12.2 trillion won supplementary budget earlier in the day, emphasizing the need to support key industries amid the intensifying trade war and recovery efforts after recent wildfires in the southeastern region of the country.

Of the 12.2 trillion won, the government plans to use 4.4 trillion won to mitigate trade risks and support advanced industries.

The 25 trillion won policy support package has two main parts. It provides 15 trillion won in low-interest loans to companies affected by the U.S. reciprocal tax. Second, it provides 10.2 trillion won in guarantee insurance for export industries like shipbuilding.

Currently, the South Korean government is preparing to negotiate with the Trump administration of the United States next week on U.S. import tariffs, including a 25% reciprocal tariff on South Korea.

In addition, the South Korean government plans to double the annual budget to 400 billion won to stabilize the supply of six key minerals, including rare earth minerals such as lithium and molybdenum, which may face disruption.

The South Korean government also decided to increase the upper limit of the issuance of foreign exchange stabilization bonds from US$1.2 billion to US$3.5 billion in response to turbulence in the foreign exchange market.

To boost competitiveness in artificial intelligence (AI), the government plans to invest 1.8 trillion won. They will buy advanced graphics processors (GPUs), develop top large language models (LLMs), and train over 3,300 master's and doctoral students in related fields every year.

To this end, the scale of the AI ​​Innovation Fund will be expanded from the current 90 billion won to 200 billion won, and 10 billion won will be provided to 50 companies conducting research and development (R&D) projects.

Also, the government set aside 500 billion won to boost the competitiveness of key industries like semiconductors.