Multiple media outlets have reported that, in response to potential trade uncertainties under the Trump administration, the South Korean government recently announced it would provide 360 trillion Korean Won in policy financing support to export companies. Additionally, South Korea’s Samsung and LG have been reported to consider relocating some of their appliance production from Mexico to the United States.
South Korean Government Announces 360 Trillion Won Support for Export Companies
Reports indicate that, following Trump's rise to power, economists warned that, due to South Korea’s trade surplus with the United States reaching a record $55.7 billion in 2024—a 25.4% increase over 2023—the Trump administration might introduce trade policies targeting South Korea.
To address this risk, the South Korean Ministry of Finance issued a statement on January 20, expressing concerns that external uncertainties could worsen and negatively affect exports. The government announced plans to provide 360 trillion Korean Won in policy financing support to export companies.
According to the report, the South Korean government plans to provide this policy financing support through state-owned banks and institutions in 2025. The funds set aside to adjust for foreign exchange fluctuations will also increase from 12 trillion Korean Won in 2024 to 14 trillion Korean Won in 2025. Additionally, government project spending will rise from 21 trillion Korean Won to 29 trillion Korean Won.
Samsung and LG May Shift Some Appliance Production to the U.S.
At the same time, following U.S. President Trump's statement on January 20 that he is considering imposing a 25% tariff on goods imported from Canada and Mexico starting February 1, South Korea's Samsung and LG have been reported to be contemplating moving some of their appliance production from Mexico to the U.S.
Unnamed industry sources revealed that Samsung is considering relocating its dryer production from its Mexican plant to a factory in South Carolina, USA. Samsung Electronics stated that, with production bases in many regions around the world, it will closely monitor the situation and respond flexibly.
LG is also considering moving its refrigerator production from Mexico to its factory in Tennessee, USA. The company further noted that it would adjust its production system and manufacturing locations based on market changes.
