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The finance ministry of South Korea announced on Monday that it will allocate up to 181 trillion won (equivalent to $137 billion) in low-interest loans for exporters through the end of the current year. Additionally, the ministry will eliminate visa application fees for tourists from China in an effort to boost both exports and tourism.
The South Korean government has set a target to raise the monthly influx of Chinese visitors from the existing one million to 1.5 million. This will be achieved by swiftly removing visa charges and collaborating on tourist activities with retail businesses.
“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.
Economic experts at ING predict that economic expansion in the third quarter will slow down to a seasonally adjusted 0.2% quarter-on-quarter, compared to 0.6% in the preceding quarter, due to a further slackening in domestic consumption.
