The Financial Services Commission (FSC) of South Korea unveiled an 80 trillion won (US$54 billion) support package to protect industries from complications arising from the conflict in the Middle East.

The government will provide this total in new funds by combining policy finance and private finance to support companies affected by the Middle East crisis. This measure aims to contain the fallout before it spreads across various economic sectors, including steel, machinery, and electronics.

FSC Chairman Lee Eog-weon warned of potential economic contagion into the machinery and electronics sectors due to rising logistics costs and supply chain instability.

The package contains 25.6 trillion won from state lenders and over 53 trillion won from private sectors. To reduce refinancing pressure, the government will ease repayment terms for small and mid-sized firms on Primary-Collateralized Bond Obligations (P-CBOs).

Additionally, a new 1 trillion won Corporate Restructuring Innovation Fund will support six key industries, such as semiconductors and automobiles. Authorities retain the flexibility to expand this program based on future industrial requirements.