Geopolitical risk from the Middle East is shaking monetary and financial policy, with the Bank of Korea holding its policy rate at 2.50 percent for a seventh straight meeting. Governor Rhee Chang-yong warned stagflation cannot be ruled out depending on developments. Financial authorities are expanding support by 26.8 trillion won and boosting contributions and small loans for vulnerable groups. Banks are testing new credit-scoring models for small merchants and firms are widening AI- and platform-based services.

KB Financial Group said on April 12 it selected 50 safety-technology suppliers for a small business industrial safety support programme run with the Korea SMEs and Startups Agency. The programme is designed to give suppliers opportunities for technology verification and business expansion, while helping demand companies improve working conditions and strengthen safety capabilities. The partners will provide 3.3 billion won and apply a performance-based support model.