Korea to offer $9.62 bil. to support SMEs amid FX volatility

Finance Minister Koo Yun-cheol speaks during a meeting with economy-related ministers at Government Complex Sejong, Friday. Yonhap

Korea will spend 14.9 trillion won ($9.62 billion) to support small-and medium-sized enterprises (SMEs) hit by the recent foreign exchange volatility, the finance minister said Friday.

Finance Minister Koo Yun-cheol discussed the measures with related ministries, under which the government will provide the funds in loans and guarantees for SMEs experiencing financial challenges due to the recent slide of the Korean won against the greenback.

Koo said such moves came amid the government's push to utilize all available financial and taxation measures to help SMEs, as the foreign exchange volatility has been weighing on people's livelihoods, including through higher consumer prices.

"Korea has been stably managing risks at home and abroad, which led to an unprecedented boom in exports despite the Middle East war," Koo said, noting the government will further speed up efforts to shield the economy from uncertainties.

Touching on the government's recent drive to promote investment in regional areas, including projects by Samsung Group and SK Group, Koo said the government will push for all-out support for their successful implementation.

"The key to gaining a competitive edge in the global race lies not in the Seoul metropolitan area, but in the provinces," Koo stressed.