The startups ministry here said on Wednesday it will provide 1.5 trillion won ($1.03 billion) worth of financial support to small and medium-sized enterprises (SMEs) in South Korea that suffered damage in trade due to the recent weakening of the local currency.

The announcement was made as part of the Ministry of SMEs and Startups' plan for this year reported to acting President Choi Sang-mok, reports Yonhap news agency.

Small businesses in the country have reported heavy losses in their trade activities as the Korean won weakened sharply amid deepening political crisis and growth woes, once going below the 1,470 won per dollar level during intraday trading last month, the lowest mark in nearly 16 years.

The ministry said it also plans to create a 1.9 trillion-won fund to revitalise the venture capital market and work to foster 1,000 startups in strategic industries, such as system semiconductors and artificial intelligence, in 2025.

Under the plan, the ministry will expand its program aimed at facilitating cooperation between startups and conglomerates, and create K-startup Silicon Valley town, an organization that will help local startups to launch their business in the U.S. market.

It will also promote exports of Korean beauty and food products, as well as media content and technology services, by creating a K-beauty global fund and a joint fund with Saudi Arabia for local game companies wishing to break into the Middle Eastern market.

Additionally, the ministry said it will conduct a comprehensive investigation into unfair business practices in the delivery platform sector.

Last month, the government vowed to introduce measures to ease the burden on small merchants from delivery app commission fees and other business challenges as part of efforts to boost sluggish domestic consumption.