Ministry of Trade, Industry and Energy Seeks 1.3% Increase in 2024 Budget to Foster Sectors, Trade


On Tuesday, the Ministry of Trade, Industry and Energy proclaimed that it has requested a 1.3 percent expansion in its budget for the upcoming year to bolster the semiconductor industry and other advanced sectors while also augmenting exports.

The ministry petitioned for a budget of 11.22 trillion won (US$8.47 billion) for 2024, which also includes providing additional support to vulnerable groups with their energy bills.

Of the total, the ministry designated 5.14 trillion won for industry-related activities, a 10.3 percent decrease from the previous year. A ministry official stated that the government will further back strategic industries such as chips and batteries, while working to restructure state-backed projects.

Another 4.79 trillion won has been set aside for efforts to enhance energy security and for subsidies for those in need due to a recent rise in utility rates. The budget for energy vouchers will triple to 685.6 billion won in 2024 from this year’s 190.9 billion, and the budget for small merchants to upgrade their air conditioning and heating systems will soar more than 200 percent to 163.4 billion won.

Significant energy security projects include the technology development for small modular reactors and the financial support for nuclear energy firms.

The ministry also proposed to raise the budget to support exports by 38.1 percent on-year to 1.11 trillion won next year due to the escalating uncertainties in the international trade environment.

South Korea has been dealing with a slowdown in the growth of exports in recent months as the global economy has weakened. Exports are the country’s main growth driver.

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