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South Korea's small- medium-sized enterprises (SMEs) took out loans in April worth 463.9 trillion won, higher by 8.4 trillion won more from the previous month.
The amount represents the steepest increase in loans since September 2015 due to the low-interest rate program of the government, which is part of its effort to counter the effects of the COVID-19 pandemic.
Of the 8.4 trillion won jump in loans, more than 5.1 trillion won was lent to small merchants, to whom the program was directed.
The loans given were up to 30 million won per person, with an annual interest rate of 1.5 percent. The government shouldered 80 percent of the difference between the market rate and the offered rate.
The combined loans made out by Korea's top five commercial banks ― Shinhan, KB Kookmin, Woori, Hana, and NongHyup, ― stood at 1,187.5 trillion won in April, up 16.5 trillion won from the previous month.
Borrowings took out by large firms also increased for the second consecutive month in April, up by more than 5.8 trillion won from a month earlier.
The month-on-month increase of 8.9 trillion won in March was the highest since September 2019.
The top five banks have also begun to offer relief loans to small merchants hit by the virus pandemic.
