S.Korea to provide exporters $137B of policy financing until year-end

South Korean Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho speaks during an interview with Reuters in Incheon, South Korea, May 3, 2023. REUTERS/Kim Hong-Ji/File photo

SEOUL  – South Korea will provide up to 181 trillion won ($137 billion) of cheap loans to exporters until the end of this year and waive visa processing fees for Chinese tourists to spur exports and tourism, its finance ministry said on Monday.

READ: South Korea promises all-out efforts to boost exports, attract tourists

The government aims to increase the number of Chinese tourists to 1.5 million a month from the current one million by expediting waiving visa fees and coordinating tourist events with retailers.

“In September, the trade balance is likely to remain in surplus while the declines in exports will further ease, and exports are likely to swing to growth during the fourth quarter,” finance minister Choo Kyung-ho told policymakers at a meeting on Monday.

READ: South Korea exports fall less than expected in August

Analysts at ING forecast we third-quarter economic growth will decelerate to 0.2 percent quarter-on-quarter seasonally adjusted from 0.6% in the second quarter, with domestic demand slowing further.

($1 = 1,317.5500 won)