South Korea financial groups agree to provide liquidity

Woori Financial

31/10/2022 23:27

SEOUL, Nov 1 (Reuters) - Leaders of South Korea's top
financial groups agreed with the country's financial regulator
on Tuesday to ensure sufficient liquidity is supplied to the
local money and bond markets.
    South Korea's financial authorities are working to implement
a series of measures to stop a credit crunch developing from a
fast rise in interest rates as the central bank tightened
monetary policy to contain inflation. 
    The agreement came in a meeting between Financial Services
Commission (FSC) Chairman Kim Joo-hyun and chairmen of KB
 105560.KS , Hana  086790.KS , Shinhan  055550.KS , Woori
 316140.KS  and NH financial groups, the FSC said in a
statement. 
    The leaders of the five financial groups said local markets
were showing signs of stability. The groups plan to supply a
combined 95 trillion won ($67 billion) of liquidity through
various programmes this year, they said.
    That amount would include the groups' participation in stock
and bond market stabilisation funds that are already operating
and their plans to reinforce the capital holdings of their
member companies, according to the statement. 
    The statement did not say how the amount compared with what
had been done in previous years. 
    ($1 = 1,426.0300 won)
 (Reporting by Choonsik Yoo; Editing by Tom Hogue)
 ((choonsik.yoo@thomsonreuters.com; +822 6936 1464;))