S. Korean parliament OKs bank bailout plan

SEOUL, Oct. 30 (Yonhap) -- The South Korean parliament on Thursday passed a massive financial bailout package, aimed at shoring up local banks suffering from dollar shortages amid the Wall Street-triggered global credit crunch.

The scheme calls for the government to provide guarantees for a period of three
years for up to US$100 billion in foreign currency loans to be raised by 18
domestic banks through June.
Among 238 legislators who voted, a majority of 218 voted for the motion and 10
against. Another ten lawmakers abstained.
The latest market stabilization efforts by the conservative Lee Myung-bak
government come as analysts question South Korean banks' ability to acquire
enough dollars to pay off maturing foreign loans as credit conditions tighten
worldwide.
An already squeezed credit market took yet another bad turn following the
collapse of five of the largest financial institutions on Wall Street last month.

While agreeing on prompt approval, rival parties added to the motion a set of
stricter conditions to be applied to banks and the government. Critics of the
bailout plan have been skeptical about using taxpayers' money to fix what they
claim are blunders made by the government and state-run banks.
The pledged $100 billion is roughly 15 percent of South Korea's annual gross
domestic product.
hayney@yna.co.kr
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