SEOUL : South Korea’s state-run banks are providing at least two trillion won ($1.54 billion) of liquidity support to a credit union hit by customers withdrawals through repurchase agreements, joining commercial banks also offering financing.
The Industrial Bank of Korea and the Korea Development Bank said on Tuesday they had signed agreements with MG Community Credit Cooperatives (MGCCC) for an amount of 1.5 trillion won and an amount between 0.5 to 2.0 trillion won, respectively.
South Korea’s financial services regulator has asked major commercial banks to prepare around $4 billion in financing to support the credit union, Reuters reported on Monday.
($1 = 1,297.7400 won)
Source: CNA
