South Korea may extend the coronavirus relief loan program for small businesses.

Finance Minister and Deputy Prime Minister Hong Nam-ki said on Thursday the government will review the possibility of extending the loan terms and deferring interest payment schedules for small businesses.

The program was put in place to help cash-strapped businesses get through the virus-induced downturn. It was set to expire at the end of September.

As of June 26, the government deployed 44 trillion won ($36.7 billion), or two-thirds of the planned 68-trillion-won budget, in loans for small businesses, Hong said.

Some 27 trillion won was given out to small business owners and self-employed individuals, meeting 70 percent of the initial target. Another 17 trillion won, or 57 percent of the planned budget, went to small- and mid-sized companies.

Hong said the government will also consider normalizing financial regulations that had been temporarily eased at the height of the outbreak in March and April. Limits set on the liquidity coverage ratio for banks and the net capital ratio for brokerages had been temporarily lowered amid rising fears of a liquidity crunch from the rapidly spreading virus.

The government believes it will not have to fully execute the market stabilization funds as stock and bond markets have rebounded sooner than expected, Hong added.

By Pulse

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