President Yoon Suk Yeol has announced a comprehensive plan worth 25 trillion won, or around 18 billion U.S. dollars, to offer customized support to the nation's small business owners.

Presiding over a meeting on the direction of state economic policy in the second half of the year on Wednesday, Yoon said small business owners who took out loans during the pandemic are struggling amid snowballing default rates.

Referring to their increased burden over interest, labor costs and lease payments, the president promised to help lift the burden of necessary expenses.

Some of the measures include expanding eligibility for state supported low-interest loan exchange, extending the repayment deadline of guaranteed loans to five years and increasing the scope of the so-called "new beginning fund" for businesses affected by the pandemic.

In a bid to enhance economic dynamics and productivity, the government plans to reduce the red tape and revamp the tax system.