The government and the Bank of Korea(BOK) have decided to come up with funds for restructuring efforts by utilizing both financial and monetary policies.
 
A consultative body set up to devise funds for corporate restructuring reached the decision during its first meeting in Seoul on Wednesday.
 
The meeting was chaired by First Vice Finance Minister Choi Sang-mok and attended by the Financial Services Commission’s Financial Policy Bureau Director General Kim Yong-beom and Bank of Korea Deputy Governor Yoon Myun-shik, among others.
 
Participants shared the view that state-run banks’ capital must be expanded to preemptively cope with jitters in the financial market that could result from the process of restructuring.
 
Participants decided to place focus on strictly sharing the pains and minimizing people’s burdens as capital expansion requires injection of taxes.
 
The government and the central bank decided to devise a plan for state-run banks to raise five to ten trillion won within the first half of this year.