South Korea’s trade ministry (MOTIE) unveiled on Wednesday its largest-ever emergency export response package, outlining $254.3 billion (366 trillion won) in trade financing, tariff countermeasures and market diversification initiatives to shield exporters from escalating global trade risks. Key measures include export insurance discounts, financial relief for SMEs and increased support for semiconductor, AI and defense exports. The government also announced expanded trade hubs in 14 emerging markets, particularly in the Global South, and pledged $38.2 billion (55 trillion won) in trade insurance for alternative markets.

The package is a direct response to new U.S. tariffs, which threaten to disrupt global trade flows, and intensifying high-tech export competition. MOTIE warned of severe headwinds in the first half of the year, citing supply gluts in semiconductors and EVs, price pressures in OPEC+ energy markets and tightening foreign investment in emerging economies. The government will also introduce special financing for companies relocating back to South Korea, expand defense and aerospace tax exemptions and launch trade delegations to the U.S. and Europe to secure new business opportunities.