Finance Minister Yoo Il-ho has dismissed media reports that the government and the central bank have differences on how to increase the lending capability of state-run banks that will lead corporate restructuring of troubled firms.

He was speaking in a meeting on Monday between senior officials at the Government Buildings Management Office, adding that capital expansion for state-run banks is a preemptive measure against financial instability, and that the government and the Bank of Korea should play necessary parts together and they agree on the view.

He said that strengthening the lending capability of state-run banks is not aimed at supporting specific firms or industries, adding the government and the BOK should combine diverse policy measures to produce an optimum solution.

Yoo’s remarks came amid media reports that the Finance Ministry and the central bank are at odds over how to finance the restructuring of troubled shipbuilding and shipping industries.

The reports said the Finance Ministry wants the central bank to play a big role in corporate restructuring by printing money, but the bank is lukewarm about the idea.