The government says it will expand subsidies to support South Korean companies that decide to return home to escape U.S. President Donald Trump’s new tariffs. 

The finance ministry, the trade ministry and related ministries announced new emergency export measures Tuesday, including proposed ways to respond to damage caused by U.S. tariffs, implement the nation’s “largest-ever trade financing” plan, and diversify exports with a focus on the Global South.

The plans will expand corporate tax, income tax and tariff reductions for companies that inevitably have to downsize their overseas business due to an increase in U.S. tariffs, even before they return to South Korea or make other adjustments.

By 2026, affected companies that undergo reorganizations such as liquidation or transfers of business will also be exempt from existing requirements for grant support.

Grants for returning companies that suffer damage from U.S. tariffs will increase by 10 percentage points, up to 45 percent of the amount they invest in South Korea.
 
The government also said it will introduce a “tariff response export voucher” to flexibly respond to difficulties faced by small and midsize exporters, as well as expand the trade insurance limit for companies impacted by trade barriers, among other support measures.

An official said the aim is to thoroughly support domestic exporters in facing emergency situations and changes in the industrial environment.

To this end the government has decided to consult with local partners through the help desks of trade centers in the United States, Mexico and Canada to support them in analyzing and responding to damage from tariffs and in discovering alternative markets.