SEOUL-- South Korea plans to extend nearly 3.1 trillion won (US$2.3 billion) mostly in low-interest loans to the local defense industry this year, the state arms procurement agency said Thursday, as the country seeks to bolster defense exports.

The consultative body consisting of officials from the government and state banks made the decision Wednesday in order to reinforce financial support for "promising" industries, including the defense sector, according to the Defense Acquisition Program Administration (DAPA).

Under the plan, the state-run Korean Development Bank and Industrial Bank of Korea are to provide a total of 3.05 trillion won in low-interest loans to defense firms that qualify for the support program. The rest of the planned package will be offered in other forms of support, according to DAPA.

The support package includes a 1.4 trillion-won scheme to back Seoul's efforts to make the defense sector a "strategic" industry to boost the country's exports through research and development, and investment and personnel employment.

Last year, South Korea's defense exports hit a record high of $17.3 billion, according to the defense industry.

Source: Yonhap News Agency