S KOREA'S LEE URGES NATIONWIDE SUPPORT FOR SMALL BUSINESSES.

SEOUL, Nov. 3 Asia Pulse - South Korean President Lee Myung-bak on Monday vowed to keep competitive small and medium-sized businesses afloat through various fiscal support measures, as part of his government's drive to prevent the global credit crunch from spilling over into the real economy.

In his biweekly radio address that aired on KBS Radio for about eight minutes, starting at 7:50 a.m., Lee also urged domestic business conglomerates to support financially strapped small businesses and called for concerted efforts to boost public confidence in economic recovery.

"Small and medium-sized businesses and self-employed individuals represent 99 per cent of all businesses in the nation and account for 88 per cent of entire employment. Thus, the deteriorating business sentiment is largely attributed to the difficulties faced by small businesses," said Lee.

"I'm convined that the rescue of small businesses is the shortest cut to increasing employment and revitalizing domestic consumption. In this sense, large conglomerates should have a greater understanding of the difficulties of small businesses. Co-existence of small and large companies will help improve overall economic competitiveness."

The president vowed that the government will further reduce taxes for small businesses and self-employed individuals and help them receive greater benefits from increased fiscal expenditure.

"The government will greatly expand its credit ...