Posco and Hyundai Steel, South Korea’s two largest steelmakers, have created a combined 100 billion-won ($82 million) fund to help smaller companies hit hard by the coronavirus, the Industry Ministry said Wednesday.

The fund will be used to extend up to 1 billion won with low interest to each struggling smaller steel company, according to the ministry.

Posco and Hyundai Steel chipped in 71.4 billion won and 28.6 billion won for the fund, respectively.

The move could help ease a credit crunch of smaller steel companies and comes as the COVID-19 pandemic has led to a sharp decline in global steel demand.

Posco has said it expects a tough business environment to persist due to the coronavirus outbreak. (Yonhap)