"Most optimistic predictions by think tanks and trade experts place the country's export total at around US$430 billion for the new year," Vice Minister Rim Che-min said in a briefing. "However, the number may go up if the government increases funds that can be used for export insurance and overseas shipment guarantees."

The target is up from the US$420 billion expected for2008 but sharply lower than its earlier goal of US$500 billion.

To promote exports, the government plans to provide 170 trillion won (US$132 billion) for insurance and guaranteed coverage in 2009, up from 130 trillion won (US$100.94 billion) set aside for this year, according to the ministry.

Steps will also be taken to boost oversees marketing efforts to help South Korean companies increase their sales in foreign market, the ministry added.

Meanwhile, the ministry expected the nation will post trade surplus of US$10 billion next year thanks to a sharp drop in imports.