backed loans to regional SMEs top 43 tn won

Loans extended by banks under a Bank of Korea (BOK) support program for small and medium-sized enterprises (SMEs) outside the Seoul metropolitan area have exceeded 43 trillion won ($30.3 billion), up by more than 40 percent from the end of 2024.

The total is 7.4 times the central bank’s 5.9 trillion won funding allocation for the program, reflecting growing demand from regional SMEs seeking relief from rising borrowing costs.

According to data submitted by the BOK to Rep. Kim Sang-hoon of the People Power Party on Tuesday, outstanding bank loans under the regional SME support program reached 43.46 trillion won as of September, up from 39.67 trillion won at the end of last year.

The figure represents an increase of 12.44 trillion won, or 40.1 percent, from 31.02 trillion won at the end of 2024.

The BOK’s 5.9 trillion won allocation for the regional SME support program has already been fully utilized.

Under its Bank Intermediated Lending Support Facility, the BOK provides low-interest funding to commercial banks to ease financing costs for SMEs and small business owners.

Banks combine the central bank’s low-cost funding with their own resources to offer loans at more affordable interest rates, helping businesses manage their borrowing costs.