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BOK Head: Restructuring Plans Under Discussion Including Capital Expansion Fund

Written: 2016-05-13 16:50:30Updated: 2016-05-13 18:23:59

BOK Head: Restructuring Plans Under Discussion Including Capital Expansion Fund

Bank of Korea(BOK) Governor Lee Ju-yeol says talks are under way with related agencies on ways to expand capital at state-run banks for purposes of corporate restructuring. 

In a news conference held after the BOK's monthly rate-setting meeting on Friday, the central bank chief said that concrete measures are being discussed with relevant parties but nothing has been decided yet.

He added that a capital expansion fund is under review as an option. But he explained that even if the fund option is adopted, the size of the fund will have to be assessed according to the credit soundness at state-run banks and various scenarios of restructuring procedures. 

The governor reiterated that over the course of discussions, losses to the central bank must be minimized.

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