MOTIE, South Korea, to take its budget to 11.2 trillion won, registering a 1.3% hike than 2022 budget

South Korea's Ministry of Trade, Industry, and Energy (Motie) is set to bolster its 2024 budget to 11.2 trillion won ($8.47bn), representing a 1.3% increase from the current year. The enhancement aims to prioritize high-tech industries, rejuvenate the domestic economy, and significantly amplify energy security efforts.

The distribution of the budget will span three primary sectors: energy, industry, and trade. With energy security in sharp focus, the allocation for the energy sector is pegged at W4.8 trillion for next year, a bump from W4.35 trillion this year. Approximately 43% of this proposed energy budget is dedicated to reinforcing South Korea's energy security, primarily through the acceleration of nuclear operation restoration projects. The funding for these nuclear projects will witness a considerable uptick, moving from W8.9bn to W11.2bn.

Furthermore, to ensure a resilient supply chain for essential resources, the budget outlines W855bn, a substantial increase from W677bn of the current year. This allocation encapsulates initiatives like stockpiling crucial resources such as oil, lithium, and other rare earth metals. The country's commitment to energy security is also evident in its strategic oil reserve plans. With an ambitious target of stockpiling 100mn bl by 2025, investments for both domestic and overseas oil fields are set to jump to W48.14bn, up from W30.13bn.

Considering South Korea's heavy reliance on imports for its energy, amounting to over 90%, the budgetary emphasis on energy security is both strategic and timely. With the Middle East supplying about 70% of South Korea's crude needs, the country's push to stabilize its energy supply chain becomes all the more critical. Another notable initiative is the W4.4bn fund dedicated to researching lithium extraction from salt lakes.

On the industry and trade front, while the budget for the industrial sector sees a marginal dip, there's a proposed surge in trade sector funding. Motie intends to allocate a whopping W2.16 trillion to enhance the global standing of advanced industries, including semiconductors and electronics. This allocation introduces a loan program, earmarking W100bn to aid SMEs in these advanced sectors. As for the trade sector, its funding is poised to leap from W804.5bn this year to W1.11 trillion in the next.

According to the article by Procurement Resource, South Korea's Ministry of Trade, Industry, and Energy (Motie) plans a 1.3% budget increase for 2024, targeting W11.2 trillion ($8.47bn). This rise emphasizes energy security, high-tech industries, and domestic economy rejuvenation. The energy sector will get W4.8 trillion, focusing on nuclear operations and resource stockpiling, with a notable W4.4bn for lithium extraction research. While the industrial sector budget slightly decreases, the trade sector sees a jump, emphasizing advanced industries support and SME loans, reflecting South Korea's commitment to strengthening its global industrial presence.