South Korea's central bank has cut interest rates to a record low and signalled further cuts could lie ahead.
The Bank of Korea lowered rates on Thursday for the sixth time in four months, reducing them to 2% from 2.5%.
Afterwards, the South Korean won fell to a two-month low against the dollar.
The BBC reports President Lee Myung-bak also approved a $US37 billion support package for small and medium-sized companies struggling to survive the credit crunch.
Bank of Korea Governor Lee Seong-tae said "further adjustments" to the rate were possible.
He added the economy was likely to suffer its first annual contraction for more than 10 years.
