Finance Minister Kwon O-Kyu did not say when the one trillion won (1.08 billion dollars) fund would be set up but promised to create a better business environment for small firms.

"The government decided to create the fund aimed at supporting small- and medium-sized companies with high technology," he said at a meeting of businessmen.

Kwon said the government would take measures to ease restrictions and financial burdens on small firms.

Business groups have urged the government to improve unfavorable market conditions but in response, the government has struggled to boost corporate capital spending.