South Korean President Lee Myung-bak today appealed for financial support for the country's small and medium-sized businesses to prevent the global financial turmoils from spilling over into the real economy.

"Small and medium-sized businesses and self-employed individuals represent 99 percent of all businesses in the nation and account for 88 percent of entire employment. Thus, the deteriorating business sentiment is largely attributed to the difficulties faced by small businesses," said Lee at his biweekly radio address aired on KBS Radio in the morning.

During his eight-minute address, he urged domestic business conglomerates to support small businesses.

"I'm convinced that the rescue of small businesses is the shortest cut to increasing employment and revitalizing domestic consumption. In this sense, large conglomerates should have a greater understanding of the difficulties of small businesses. Co-existence of small and large companies will help improve overall economic competitiveness," he added.

The president pledged that the government will further reduce taxes for small businesses and self-employed individuals and help them receive greater benefits from increased fiscal expenditure.