South Korea will extend repayment terms for guaranteed loans held by shuttered small business owners to as long as 15 years, the Ministry of SMEs and Startups said on Thursday. Beginning Friday, borrowers who operated between April 2020 and June 2025 but have since closed their businesses can convert existing loans backed by regional credit guarantee foundations into new facilities with a two-year grace period and a 13-year installment plan. The loans will carry interest rates pegged to the five-year government bond yield plus 0.1%, or about 2.95% as of Sept. 1, with guarantee fees fully subsidized by the state.