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4.4 The financial sector

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Question 2

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.

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4.4 The financial sector Questions

  1. A Level
  2. /Economics
  3. /4.4 The financial sector