In a bid to bolster key sectors and alleviate challenges faced by small businesses amidst high interest rates, South Korea has introduced a substantial financial support program totaling 75.9 trillion won ($56.97 billion).
The initiative encompasses various measures, including 15 trillion won in affordable policy loans from a state-run bank designated for pivotal industries like semiconductor and battery production. Additionally, commercial banks are slated to contribute 20 trillion won to assist small and medium-sized enterprises.
Chairman Kim Joo-hyun emphasized the necessity for banks to broaden their support beyond consumer financing, particularly focusing on mortgage loans. The evolving landscape of trade relations with China, technological advancements across major industries, and the increasing fragmentation of global supply chains have underscored the urgency for regulatory reform and financial backing, Kim stated.
To address liquidity challenges faced by companies amidst high interest rates, banks will implement temporary interest rate reductions, as outlined by the Financial Services Commission.
This financial support program signals South Korea's commitment to fostering resilience and growth in key sectors while bolstering the resilience of small businesses amid challenging economic conditions.
