Published : Sept. 21, 2017 - 10:53
South Korea will provide financial assistance and an insurance package for local companies suffering from losses in China due to anti-Korean sentiment and regulatory hurdles, the trade ministry said Thursday.
Korean companies in automotive parts, cosmetics and foods have faced tougher customs checks in China after Seoul deployed an advanced missile defense system on its soil against North Korea, a move strongly opposed by Beijing.
Trade Ministry (Yonhap)
The Ministry of Trade, Industry and Energy said it will double the loan limits and discount half of the deposits for Korean companies that export goods or have factories in China.
The government will also give preferential treatment for companies that want to relocate their plants outside of China.
The state-run Korea Trade Insurance Corp. introduced a comprehensive corporate insurance program that compensates up to $50,000 for losses suffered by small and medium-sized enterprises doing businesses in China. It doesn't require applications by each company.
The ministry also said it will assign 1.4 trillion won ($1.23 billion) of short-term trade insurance for small and medium-sized enterprises to help them tide over a tough business environment in China, the nation's largest trading partner. (Yonhap)