The funds will be drawn from reserves under the central bank's Bank Intermediated Lending Support Facility and assigned to its Gyeongnam branch, the BOK said.
Eligible businesses must have received official certification of flood damage from a local government or administrative office.
The program covers small business owners and self-employed workers as well as companies already receiving support under the BOK lending facility.
The central bank will provide funding to financial institutions equivalent to 100 percent of eligible loans they extend to affected businesses.
Eligible lending includes new loans with maturities of up to one year, as well as loan extensions and refinancing.
The Bank Intermediated Lending Support Facility provides low-interest funds to banks based on their lending to SMEs and other eligible businesses.
The BOK raised the facility's interest rate to 1.25 percent from 1.00 percent in July alongside its latest Base Rate increase.
The central bank said it will review the extent of flood damage and borrowing demand among affected businesses and provide additional support if needed.
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