Government to Establish 3 Trillion Won Overseas Construction Fund... Expand Economic Security Items from 327 to 340

In response to external uncertainty, the government will strengthen risk management in trade, supply chains and finance, while supporting overseas investment and fostering new industries. It will use 1 trillion won in government funding as seed capital to establish a 3 trillion won overseas construction strategy fund and expand the list of economic security items to 340. It will also pursue the creation of a global carbon market using international organizations and advanced technologies.

On the 12th, Deputy Prime Minister and Minister of Finance and Economy Lee Hyungil chaired his first External Economic Ministers' Meeting since taking office at the Government Complex Seoul, then convened the Supply Chain Stabilization Committee to discuss related measures. Lee said, "The current account recorded a surplus of $46.11 billion last August, extending its surplus streak to 40 consecutive months, and exports have continued to show solid momentum." He added, "As external uncertainty surrounding our economy remains high, we must closely monitor and respond to external risks."

Deputy Prime Minister and Minister of Finance and Economy Lee Hyeongil speaks about reviewing external economic risks and response measures at a meeting of ministers for external economic affairs at the Government Complex Seoul in Jongno-gu, Seoul, on the 12th. 2026.10.12. Photo by Cho Yongjun

The government will shift its overseas investment support system from assistance for individual projects to country- and region-specific joint investment platforms based on intergovernmental cooperation. It plans to establish an overseas construction strategy fund totaling 3 trillion won, helping overseas project wins lead to equipment and materials contracts for domestic small and medium-sized businesses and mid-sized companies, as well as their participation in long-term maintenance, thereby creating jobs in Korea and revitalizing regional economies. As a follow-up to the outcomes of summit diplomacy, the government will establish an industrial complex in India exclusively for Korean companies to help them expand exports and win contracts, while supporting their stable entry into the local market. It will also make use of economic cooperation channels with major countries, including the Korea-India Finance Ministers' Meeting scheduled for November. The government aims to achieve tangible results in the culture and finance sectors through follow-up negotiations on services and investment under the Korea-China Free Trade Agreement (FTA), thereby broadening the foundation for entering the Chinese market.

The government will also work to establish a Global High-Integrity Carbon Market (GVCM). It will issue credits that can be used in both regulated and voluntary markets and manage their issuance and records using blockchain. It also plans to improve the reliability of verification of greenhouse gas reduction results by collecting and analyzing data using satellites and artificial intelligence (AI). The government will also strengthen supply chain management. It will broaden the role of the Supply Chain Stabilization Fund, launched in September 2024, which has provided support for 153 cases totaling more than 17.4 trillion won to date. The government will introduce new programs to support stockpiling strategic materials and diversifying import sources. It will also use 200 billion won included in next year's budget proposal to support projects securing overseas production bases that are difficult for the private sector to invest in alone. The government will also overhaul its system for managing economic security items. It will add key items in areas such as semiconductors, renewable energy, space and aviation, increasing the number of items under management to 340, and replace the existing Grade 1-3 classification with priority and general management categories. Around 100 priority-management items, including critical minerals and materials, parts and equipment, will be more closely monitored through a cross-ministerial integrated early warning system scheduled for pilot operation in November. The government will also focus financial and tax support on these items, including preferential fund interest rates of up to 2.3 percentage points.

Export-bound cars await shipment at Pyeongtaek Port in Gyeonggi Province on Feb. 13, after U.S. President Donald Trump signed a proclamation imposing an across-the-board 25% tariff on steel and aluminum products imported into the United States and said his administration was also considering tariffs on automobiles and semiconductors. Feb. 13, 2025. Photo by Kang Jinhyeong.

The government will analyze about 600 million global patent records to identify alternative suppliers for items and technologies that are highly dependent on specific countries, and will also support technology transfers. It will set the safety stock target for automotive urea at 70%, with the government directly stockpiling some of the supply, and continue managing crude oil and naphtha supplies amid the prolonged tensions in the Middle East.

Deputy Prime Minister Lee Hyungil said, "The government will work as one economic team to respond steadily to external uncertainty and create new growth opportunities." He added, "We will carry out the tasks discussed today without disruption so they can deliver tangible results on the ground."

This content was produced with the assistance of AI translation services.