The maturity date on loans extended to COVID-19-hit SMEs and the self-employed will be extended once again as high interest rates, soaring inflation and the weakening local currency take their toll on businesses.

The Financial Services Commission(FSC) announced on Tuesday that the maturity and repayment postponement will be extended for the fifth time since the government and the financial sector introduced the measures in April 2020.

The latest extension of up to three years will touch some 570-thousand borrowers with loans amounting 141 trillion won as of the end of June, following the last extensions' impact on loans worth a total of 362-point-four trillion won.

Unlike past extensions, however, the latest will be offered with support from a "new start fund" worth 30 trillion won to help SMEs and the self-employed with interest rate adjustments and debt settlement based on their unique situation.

A one-year repayment deferral, meanwhile, allows loan recipients suffering from liquidity issues to resume payment after their business has stabilized.