South Korea's new risk-free rate means cheaper loans for small firms — 1 trillion won (about $700 million) of them

From October 26, South Korea's small companies can borrow against KOFR, the country's new risk-free benchmark rate — calculated from government-bond-backed trades, so it doesn't wobble with any single bank's fortunes. Korea Development Bank and Industrial Bank of Korea are each putting up 500 billion won, 1 trillion won (about $700 million) in total. KDB will trim rates by up to 0.65 percentage points for small and mid-sized firms, with an extra break for companies based in — or moving to — the provinces. For a small firm, half a point is payroll.

SDG 8 · Decent work and economic growth — Mechanism: funding & finance