Low-Interest Aid for Small Firms

Korea Development Bank will begin offering low-interest loans to small and midsize businesses Tuesday to help them pursue normal operations and execute restructuring plans.

A total of 700 billion won ($527 million) has been set aside for the loans, which will be available to companies with credit ratings of "BB" or better.

Denominated in either won or Japanese yen, the bank announced that the two-year loans will carry a minimum annual interest rate of 6.5 percent for loans in the former and 1.65 percent for loans in the latter.

The rate will be adjusted based on the company's credit rating.

To contain the risks of foreign exchange fluctuations, a ceiling will be in effect for the exchange rate that companies receiving yen-dominated loans will use for repayment.