Seoul: The central bank said Friday it will extend a financial support program for small and medium-sized enterprises (SMEs) and self-employed workers amid a sluggish recovery in vulnerable sectors of the economy. The Bank of Korea's (BOK) low-rate special loan program, initially scheduled to expire this month, will now be extended by six months through the end of July.

According to Yonhap News Agency, the BOK's program, valued at 14 trillion won (US$9.51 billion), allocates 75 percent of its SME loan volumes at a preferential interest rate of 1 percent. This initiative was launched in January 2024 with an initial cap of 9 trillion won, which was increased to 14 trillion won in January of the following year.

The BOK indicated that although there has been an economic recovery, driven by a rebound in consumption and rising exports, vulnerable sectors such as regional SMEs and self-employed workers have not experienced the same level of recovery. The extension of the program aims to enhance SMEs' access to financing and ease their financial burdens.