South Korea's financial regulator said Monday it has requested 3.1 trillion won ($2.5 billion) in budget for next year, in order to focus on providing funds for small- and medium-sized firms and underprivileged people.

The budget proposal by the Financial Services Commission is part of a budget bill of 513.5 trillion won for next year, which was drafted by the finance ministry last week.

The lion's share of the FSC budget proposal, or 2.1 trillion won, will be set aside for the retrieval of public funds, according to the FSC. 

The remaining budget will be invested into state-run banks, including the Korea Development Bank and the Industrial Bank of Korea, to help them lend money to companies and small business owners, the FSC said.

South Korea's 2020 budget proposal marked the most expansionary spending since the 2008-09 global financial crisis as the nation's economy is grappling with slowing exports and sluggish consumption at home. (Yonhap)