The government decided Sunday to increase financial assistance to travel and lodging businesses, one of the industries hit hardest by the deadly ferry sinking last month.

The tourism promotion and development fund, initially set at 15 billion won ($14.6 million), will be increased to 50 billion won, and interest rate on loans from the fund will be lowered to 2 percent from 2.25 percent, finance ministry officials said.

The measures were set at an inter-ministerial meeting that followed Friday’s government announcement that it would spend more money in the first half to prop up domestic demand.

Saddened by the sinking of the ferry Sewol on April 16, which left more than 300 people dead or missing, South Koreans have cut down on spending. Travel, lodging and transportation businesses reported big losses as people canceled trips. Economic policymakers worry that the drop in consumption would affect economic growth targets this year just as the local economy was starting to pick up. (Yonhap)