The Small and Medium Industries Sector Loan Project will offer a package of credit ($110 million), technical assistance and training ($1 million) tailored to the needs of the Korean small and medium industries. The technical assistance and training component will enable SMIPC to expand its activities of assisting private enterprises to all SMI subsectors. These activities include upgrading skills and improving the productivity of SMIs in using existing and new technology at the plant level. This component of the project will also support overseas training of selected SMIPC and SMI staff. The credit component of the loan will help cover the foreign exchange requirements of subprojects financed by SMIB and CNB from mid-1985 to mid-1987 and will support the continued institutional development of SMIB and CNB. The project will also promote the development of improved subcontracting policies, which is important to SMI development in Korea where large companies have the potential to play a major role in assisting smaller firms.