The government will provide 19.4 trillion won ($18.06 billion) in loans and other financial support for small and medium enterprises as part of its efforts to stabilize the livelihoods of ordinary people ahead of the Chuseok holiday, the finance ministry said Tuesday.

Under the plan, which was approved during a Cabinet meeting earlier in the day, a total of 12.3 trillion won will be offered in loans for cash-strapped SMEs and 7.1 trillion won will be set aside to expand loan guarantees for operation funds given to small companies, according to the ministry.

The amount is 5 trillion won larger than what was offered ahead of last year’s Chuseok holiday, the ministry said. Chuseok falls on Sept. 12 this year.

The loans will be available through commercial banks and other state-run lenders including Korea Development Bank, Industrial Bank of Korea and Korea Finance Corp. The guarantee support will be provided through such institutes as Korea Credit Guarantee Fund, Korea Technology Finance Corp.

The move comes as the government is pushing to stabilize the livelihoods of ordinary people ahead of Chuseok, one of the nation’s biggest traditional holidays.

Prices are likely to increase in the run-up to Chuseok as demand for food usually grows as people prepare special meals and buy presents for friends and relatives.

In a bid to stabilize consumer prices before the holiday, the finance ministry noted that it plans to designate 21 foods and personal services and closely watch their price movements until Sept. 9.

Last week, the government unveiled a set of prices stabilization measures that mostly aim to expand the supply of major foods as part of efforts to meet rising demand in the weeks to come. 

(Yonhap News)