Support for state-run banks to include direct fiscal support: South Korea finance minister

[SEOUL] South Korea's finance minister said on Tuesday financial support for two state-run banks most exposed to troubled shipbuilders and shippers will be provided through both direct fiscal support and indirect liquidity via a fund.

"We have had developments in talks where it was agreed there would be a policy mix with government money and central bank efforts to support the state-run banks with direct support and indirect capital through a fund," said Minister of Strategy and Finance Yoo Il Ho to top ministry officials during a regular meeting. The comments were provided by the finance ministry.

The government, Bank of Korea and other related bodies are in talks to support the state-run banks propping up shipyards and shippers. They plan to announce details by end-June to ensure the banks do not run into a credit crunch.

REUTERS