South Korea's financial regulator unveiled a raft of measures on Thursday worth
a total of 13 trillion won (US$11.5 billion), aimed to help local exporters
secure funds amid a protracted global downturn.
Under the measures,
exporters will be able to borrow money at lower interest rates from state-run
policy lenders and commercial banks here for various purposes such as facility
expansion, according to the Financial Services Commission (FSC).
The
regulator's move came as the country's economy, Asia's fourth-largest, has been
losing steam, with exports hit hard by a global slowdown. South Korea's economy
grew at a mere 0.4 percent on-quarter in the second quarter, with its exports
sinking 8.8 percent on-year to $44.6 billion in July.
As concerns over
a dampening economy have grown, FSC Chairman Kim Seok-dong rolled out a plan on
Thursday to buttress the faltering businesses.
Of the 13 trillion won,
3 trillion won will be set aside for loan guarantees, with total loan guarantees
for this year rising to 15.8 trillion won from the current 12.8 trillion won,
the FSC said.
The state-run Korea Finance Corp. and other private lenders
including Woori Bank will provide 4 trillion won for shipyards starting in
September.
Loans worth 3 trillion won designated for facility
investment will be set up by the state-run Korea Development Bank and Industrial
Bank of Korea for smaller firms through 2014, with lower interest
rates.
The scheme will also include providing loans for the smaller
firms' research and development (R&D) investments, according to the
regulator.