The South Korean government will reform financial institutions' credit assessment systems to offer innovative firms and small and medium-sized enterprises(SMEs) loans worth 100 trillion won over the next three years.

The massive loan package designed to revitalize the country's sluggish economy was announced as part of the Financial Services Commission(FSC) and government ministries' policy report to President Moon Jae-in on Thursday.

The government will allow businesses to secure more low-interest loans by using their intellectual property, production facilities and inventory as collateral.

Financing mechanisms will be enhanced to enable firms to borrow or raise funds based on their growth potential.

The FSC said it will create some 170-thousand jobs by expanding policy loans.