The Bank of Korea(BOK) has finalized the establishment of an eleven-trillion-won recapitalization fund designed to boost the capital pool of state-run banks in the course of the government-led drive to restructure the shipping and shipbuilding industries.
 
In a meeting of its Monetary Policy Board Friday morning, the central bank approved a decision to loan a maximum of ten trillion won to the Industrial Bank of Korea in order to create the fund.
 
The fund will be used to purchase bonds from the Korea Development Bank and the Export-Import Bank of Korea and raise their Bank for International Settlements(BIS) capital adequacy ratios.

The Export-Import Bank of Korea is known to be in dire need of recapitalization with its BIS ratio below ten percent, while the Korea Development Bank still has some breathing room.