Korea to boost chip, car shipments to meet $700 bil. export target

The industry ministry said Wednesday the government will step up efforts to boost exports of chips and automobiles by offering policy and financial support, aiming to achieve annual outbound shipments of $700 billion.

Exports came to $632.6 billion in 2023, down 7.4 percent from a year earlier amid global economic uncertainties.

In detail, the government vowed to beef up the outbound shipment volume of chips, the mainstay export product for Asia's No. 4 economy, to $120 billion this year, significantly rising from $98.6 billion tallied in 2023.

The ministry also set the annual export target for automobiles at $75 billion, up from the $70.8 billion posted in the previous year.

"The reshuffling supply chain, carbon neutrality, digital transition and changes in demographics will start to fully unfold this year, giving both challenges and opportunities for exports," Industry Minister Ahn Duk-geun said during a meeting with business officials.

"Potential delays in the economic recovery due to prolonged monetary tightening, coupled with geopolitical risks from the Middle East conflict and shifts in political leadership following elections in 70 countries, including the United States, still pose risks," Ahn added.

To meet the target, the ministry said it will help key industries, including chips, cars and batteries, obtain competitive technologies through policy support while addressing global protectionism moves, including the U.S. Inflation Reduction Act and Europe's Carbon Border Adjustment Mechanism.

Korea also allocated 360.2 trillion won ($270.2 billion) in trade financing to keep outbound shipments on the recovery track, it added. (Yonhap)