In April 2024, the South Korean government launched the Smart-Farm Innovation Initiative, allowing young agricultural entrepreneurs to secure low-interest loans of up to ₩200 million (approximately £120,000) to invest in automated vertical farming technology. These funds are accessed through regional agricultural co-operative banks, with the government underwriting 75% of the loan value to mitigate the high capital risks associated with modern hydroponic systems.
With reference to the information above, explain one role of financial markets.
