Finance Minister pledges to support shipping companies and startups amid recession woes


Finance Minister Choo Kyung-ho speaks during a meeting in Seoul on Friday in this photo provided by the Ministry of Economy and Finance. (Yonhap)

South Korea plans to provide a wide range of support to local shippers and venture capitalists to add vitality to weak investment sentiment amid the looming global recession, the foreign minister said on Friday. Finance.

“Recently, external and internal uncertainties have increased due to growing concerns about a global meltdown and rising volatility in the financial market,” Finance Minister Choo Kyung-ho said during an emergency meeting with related ministers. to the economy.

“The South Korean economy is expected to face a complex crisis for a considerable period,” the minister added. “The government will spare no effort to secure the export drivers to make another leap forward.”

To deal with the challenges, Choo said the country plans to allocate some 3 trillion won ($2.1 billion) to support the shipping industry, which has recently suffered from falling freight charges. .

The Shanghai Container Freight Index, a barometer of global freight rates, stood at 1,698 in October, down sharply from the 5,110 recorded in January, according to the Ministry of Economy and Finance.

South Korea plans to support development, as well as environmentally friendly and digital technologies, in the shipping industry, Choo said.

Such measures are expected to boost the combined annual sales of local shippers to 58 trillion won in 2027, up sharply from 50 trillion won in 2021, according to government data.

The country, meanwhile, will extend tax incentives to startups to help attract more investors as well, Choo added.

“In response to shrinking investor sentiment in the venture capital industry amid growing domestic and international uncertainties, we plan to revamp the role of political funds,” the minister said.

The country plans to increase the amount of venture capital funds raised here annually to 8 trillion won over the period 2022-2026, from 6 trillion won in the past five years. (Yonhap)


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