The central bank will ramp up a special loan program for small firms and self-employed people to provide them with more liquidity amid multiple challenges, officials said Thursday.
The Bank of Korea will extend the temporary special aid program to 14 trillion won ($9.78 billion) from the current 9 trillion won starting next month, according to BOK officials.
Smaller firms, as well as the self-employed with low credit scores, will be eligible for the extended program, which will be available until the end of January 2026.
"We see the need to boost liquidity support for small firms, particularly those in nonmetropolitan areas and self-employed people, given the current economic condition," a BOK official said.
The South Korean economy is projected to present weak growth in 2025 on slowing export growth and sagging domestic demand.
Political turmoil also continues to persist following impeached President Yoon Suk Yeol's short-lived martial law declaration in December, while uncertainties stemming from new trade and economic policies under the new Donald Trump administration linger.
The BOK earlier offered a 1.9 percent growth outlook for the South Korean economy this year. The projection is widely expected to be lowered. (Yonhap)
