South Korea eyes more investments in trade insurance

South Korea's exports have shown strong performance since the beginning of 2024.

The South Korean government announced on Monday that it will inject a record amount of $189.4b (255 trillion won) into trade insurance this year, as reported by Yonhap News Agency.

Despite challenges such as prolonged monetary tightening, supply chain reshuffling due to tensions between the United States and China, geopolitical risks, and elections in major countries, South Korea's exports have shown strong performance since the beginning of the year.

READ MORE: Gov't to inject 255 tln won in trade insurance

Industry Minister Ahn Duk-Geun stated during a meeting with business officials that South Korea's exports increased for the fifth consecutive month in February, with outbound shipments of chips leading the way by rising 4.8% year-on-year to $52.4b. 

He expressed confidence that exports would continue to grow in March, marking six consecutive months of expansion, driven by the strong performance of major products in key markets.

ALSO READ: Motor insurance segment in S. Korea to exceed $19b by 2028: GlobalData

Ahn emphasised that the budget allocated for trade insurance would support South Korea's efforts to achieve its annual export target of $700b in 2024. 

The ministry specified that out of the budget, $100b (136 trillion won) will be allocated to key sectors such as chips, batteries, and ships. Additionally, 7 trillion won will be spent on the defense industry, whilst $11b (15 trillion won) will be allocated to the energy sector and $3b (4 trillion won) to the defence industry.

($1.00 = KRW1,349.8)