S. Korea plans to support auto sector with $2 billion following US tariffs

South Korean officials announced today that the government intends to allocate an emergency aid package worth 3 trillion won (around $2 billion) to support the local automotive industry. The move aims to mitigate the impact of the new 25% US tariffs imposed last week by the administration of President Donald Trump.According to South Korea's Yonhap News Agency, the South Korean government is expected to approve the emergency funding plan during a ministerial meeting later this week. The plan will be implemented through state financial institutions, including the Korea Development Bank.An official from the Ministry of Economy and Finance said the package will be distributed through the Korea Development Banks existing loan programs. He noted that the final figure is still under review.In parallel, the government announced broader financing programs, including up to 248 trillion won in 2025 through state lending institutions to help companies cope with the global economic slowdown and restructure industrial sectors.The South Korean government also plans to establish a strategic fund worth 50 trillion won over the next five years to support the development of future mobility technologies, amid growing economic uncertainty following the start of President Trumps second term.It is worth noting that the automotive sector is a key pillar of South Koreas economy. In 2024, the countrys car exports to the United States amounted to approximately $34.7 billion, representing half of South Koreas total automotive exports to global markets