ANKARA

The South Korean stock index climbed to over 3,000 points on Friday, the first time in over three years, as the government decided to wipe out the debts of small businesses, local media reported.

The benchmark Korea Composite Stock Price Index (KOSPI) had risen 31.84 points, or 1.07%, to 3,009.58, according to the Yonhap News Agency.

It is the first time since January 2022 that the KOSPI hit the 3,000-point threshold.

The development came a day after the government announced a debt relief program for small business owners who are unable to repay their debts.

Debts of up to 50 million won ($36,000) that have been overdue for more than seven years will be completely written off, according to The Chosun daily.

Additionally, small businesses affected by the COVID-19 pandemic could have up to 90% of their loan principal forgiven.

The government will allocate 1.5 trillion won (approximately $1.08 billion) to fund the program, which is expected to wipe out 22.6 trillion won (around $16.3 billion) in debt held by roughly 1.23 million people, according to the daily.

This is the largest individual debt relief initiative in South Korea’s history.  

*Writing by Islamuddin Sajid