The Bank of Korea (BOK) is tightening policy across the economy while leaving the finance ministry and state-backed lenders to absorb much of the immediate strain on smaller firms.

Minutes of the central bank’s July 16 meeting show board members worrying that South Korea’s semiconductor-led boom is spreading unevenly. Export earnings, corporate profits and asset prices are rising, but many small companies, self-employed people and vulnerable borrowers continue to face weak cash flow and higher financing costs.

The board nevertheless raised the base rate from 2.5% to 2.75%. Under a separate decision, it also increased the rate charged to banks