Seoul: The South Korean stock index surged past the 3,000-point mark on Friday, marking the first occurrence in over three years, as the government announced a significant debt relief initiative for small businesses.

According to Anadolu Agency, the benchmark Korea Composite Stock Price Index (KOSPI) increased by 31.84 points, or 1.07%, reaching 3,009.58. This milestone is the first time the KOSPI has crossed the 3,000-point threshold since January 2022.

The stock market's rise followed the government's declaration of a debt relief program targeted at small business owners struggling with debt repayment. The program promises to completely write off debts of up to 50 million won ($36,000) that have been overdue for more than seven years, as reported by The Chosun daily.

Additionally, small businesses impacted by the COVID-19 pandemic stand to benefit from loan principal forgiveness of up to 90%. The government has committed 1.5 trillion won (approximately $1.08 billion) to support the initiative, which aims to eliminate 22.6 trillion won (around $16.3 billion) in debt affecting approximately 1.23 million people, according to the daily.

This initiative represents the largest individual debt relief effort in South Korea's history.