Gist of gov't measures to stabilize financial markets

SEOUL, Oct. 19 (Yonhap) -- The following is the gist of South Korea's stabilization measures for its financial industry, unveiled jointly by the Finance Ministry, the Bank of Korea and the Financial Services Commission on Sunday.

South Korea's government will:

-- Provide state guarantees for three years on banks' foreign debt to be raised
until June 2009.
-- Supply an additional $30 billion to the banking sector by using the nation's
foreign reserve holdings.
-- Supply "adequate Korean won liquidity" into domestic financial markets by
purchasing RPs, buying government bonds and redeeming monetary stabilization
bonds early.
-- Make efforts to maintain stability in the foreign exchange market through the
smoothing operation to avoid extreme volatility.
-- Provide tax incentives for long-term fund holdings.
-- Step up efforts to boost international cooperation in tackling global
financial turmoil.
-- Invest 1 trillion won into the Industrial Bank of Korea to provide additional
loans to small- and medium-sized companies.
kokobj@yna.co.kr
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