Seoul, March 24 (IANS): South Korea on Tuesday unveiled an emergency aid package worth 42 trillion won ($34 billion) to help ease the credit crunch and stabilize financial markets hit hard by the coronavirus pandemic.

The aid package came as the pandemic dealt a harsh blow to South Korean companies as well as local financial markets, reports the Seoul-based Yonhap News Agency.

Under the aid package, several dozens of local financial companies will jointly create a bond market stabilization fund worth 20 trillion won, according to the Financial Services Commission.

The Bank of Korea had slashed its base rate by 0.5 percentage point to 0.75 per cent last week in its first emergency rate cut in more than a decade.

The government said more than 20 major South Korean financial companies will create a stock market stabilization fund worth 10.7 trillion won to buttress the shaky local stock market.

On Tuesday, South Korean stocks rebounded sharply as investors were buoyed by South Korea's emergency aid package.

The benchmark Korea Composite Stock Price Index (KOSPI) soared 127.27 points, or 8.59 per cent, to close at 1,609.73.

As of Tuesday, South Korea had 9,037 coronavirus cases, while the death toll rose to 124.