This paper analyzes whether lending behaviors of state-owned banks differ from commercial banks in terms of counter-cyclicality of loans; their function as a financial safety net during the crisis period; and financial accessibility for SMEs. In order to examine counter-cyclicality of loans, we conducted panel regression using 1999-2022 domestic banks data and found that, unlike existing domestic studies, state-owned banks’ loans showed strong counter-cyclicality, while commercial banks’ loans showed pro-cyclicality. The analysis of lending behavior by type of state-owned banks revealed that loans of state development banks showed strong counter-cyclicality, while statistical significance of state commercial bank loans was relatively weaker. We also found that the degree of counter-cyclicality of state-owned bank loans was stronger during the crisis period than normal times, confirming their function as a financial safety net. Analysis by loan category showed that state-owned banks’ role of providing much-needed liquidity during the crisis period was particularly conspicuous in their loans for the self-employed who are typically severely affected by economic fluctuations. Lastly, a panel regression based on the 2017-2021 financial and credit information of SMEs revealed that state-owned banks provided greater financial access to vulnerable SMEs with lower credit worthiness when compared to commercial banks during the COVID-19 crisis period.