Seoul set to supply more liquidity via state agencies

SEOUL, Dec. 4 (Yonhap) -- South Korea will supply more liquidity to the market
through policy lenders and other state agencies to help regain financial
stability and boost the slumping economy, the top financial regulator said
Thursday.
In a keynote speech to an international investment conference, Jun Kwang-woo,
chairman of the Financial Services Commission said more speedy and sustainable
measures are necessary to cope with the current market situations.
"State agencies' roles should increase at a time when such measures to boost the
economy and help stabilize the financial market are necessary," Jun said.
The South Korean government is moving to increase capital bases at some state
lenders such as Korea Development Bank (KDB), thus allowing them extend more
loans to cash-strapped smaller companies.
The government is also planning to allow KDB to buy subordinated bonds issued by
local lenders facing credit shortage.
Earlier in the day, the government said the Korea Credit Guarantee Fund and other
state agencies will expand guarantees on trade financing to help smaller
exporters facing falling demand.
sam@yna.co.kr
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