HONG KONG, Aug 13 (Reuters): South Korea's smaller firms are struggling as credit tightens and the cost of servicing debt rises - a development that could put more strain on Asia's fourth-largest economy at a time of uneven global growth.
The government is trying to shore up faltering growth, with the new finance minister's stimulus package including funding for banks of up to 3 trillion won to expand lending and pressure for a cut in interest rates which the central bank is expected to deliver on Thursday.
Small- and medium-sized enterprises (SMEs), which account for around 90 per cent of the corporate workforce and almost half of aggregate production, are struggling to raise funds amid a drying-up of the commercial paper market and reduced access to local bond markets following some defaults last year.
S Korean firms eye rate relief as credit tightens
FE Team | Published: August 14, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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