Watchdog finalizes KDB separation plan

SEOUL, July 28 (Yonhap) -- The government will separate the state-run Korea
Development Bank (KDB) into a policy lending body and a holding company in an
effort to spur its privatization, the financial watchdog said Tuesday.
The Financial Services Commission said KDB will be split in October into a policy
financing institution to be named the Korea Public Banking Corp. and a holding
firm, which will retain its banking business.
The government, which owns 100 percent of the lender, will then reduce its stake
in the envisioned holding company within five years to put it in private hands,
it said.
sooyeon@yna.co.kr
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