A photo taken on Nov 24, 2020 shows a general view of the city skyline of Seoul. (PHOTO / AFP)

SEOUL – South Korea has prepared a financial support program of 75.9 trillion won ($56.97 billion) for companies increasing investment in key sectors as well as small businesses struggling with the impact of high interest rates.

The program includes 15 trillion won worth of cheap policy loans from a state-run bank for key industries, such as semiconductor and battery, the Financial Services Commission said in a statement on Thursday.

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Commercial banks will also provide 20 trillion won to support small and medium-sized businesses, it added.

"Our banks need to start making efforts to expand support for companies, beyond consumer financing focused on mortgage loans," said the commission chairman, Kim Joo-hyun.

Technological advancement in major industries and fragmentation of global supply chains pose new challenges to companies, raising the need for regulatory reform and financial support, said Kim.

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For companies facing liquidity trouble this year due to high interest rates, banks will offer a temporary cut in interest rates, the commission said.