SEOUL: South Korea's government has prepared financial support for small businesses and tax cuts for companies raising capital returns to shareholders, President Yoon Suk Yeol said on Wednesday.

Yoon was making a televised speech ahead of the government's bi-annual economic policy announcement due later on Wednesday.

The government has prepared a total of 25 trillion won ($18 billion) worth of support measures for small businesses struggling due to high interest rates, Yoon said.

The announcement will also include tax benefits for companies raising dividend payouts as part of the government's "Corporate Value-up Programme", which is aimed at boosting the domestic stock market.

Yoon said consumer prices are stabilising in Asia's fourth-largest economy as headline inflation has slowed for a third straight month while foreign investment inflows look solid.

Following Yoon's remarks, finance minister Choi Sang-mok said the ministry raised its forecast for this year's economic growth to 2.6% from 2.2% seen previously.

 - Reuters