Korea to set up corporate restructuring fund

SEOUL, Feb. 19 (Yonhap) -- South Korea's financial watchdog said Thursday it
plans to set up a corporate restructuring fund under the state-run debt clearer
to buy bad debt from troubled local firms.
A growing number of local companies are facing a liquidity squeeze amid the
global economic slump that has dealt a harsh blow to the export-driven South
Korean economy.
"Korea Asset Management Corp. plans to launch a fund to purchase bad debt and
support the corporate revamp efforts," the Financial Services Commission (FSC)
said in a statement. The watchdog said it plans to finance the fund by selling
government-guaranteed bonds and draw up measures for tax benefits to speed up the
overhaul process.
The FSC also said credit banks will review financial health of 44 conglomerates
until April and the country will seek to launch a special fund to buy stakes in
ailing local companies and to accelerate sales of assets in such companies.
sooyeon@yna.co.kr
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