South Korea unveiled a comprehensive support package for small businesses, including extended loan repayment periods, increased financial aid and expanded electricity subsidies. The government will raise the New Start Fund — a financial support program introduced by the South Korean government to assist small business owners and self-employed individuals who are facing financial difficulties — to over $28.7 billion (40 trillion won) and offer policy funds up to about $500,000 (700 million won) for small enterprises looking to scale up.

The measures, announced by the Ministry of Economy and Finance, aim to address challenges small business owners face due to prolonged high interest rates and delayed economic recovery. The measures include a “Financial Support 3-piece set” package, including a scale conversion guarantee allowing small business owners using loans guaranteed by regional credit guarantee foundations to extend their repayment periods up to five years.