SEOUL: South Korea’s financial authorities will raise the ceiling for their corporate bond-buying facility to 16 trillion won ($11 billion) from the current 8 trillion won, Finance Minister Choo Kyung-ho said on Sunday.
The measure is aimed at easing concerns of a liquidity crunch in corporate bond and short-term money markets, Choo said after a meeting with top financial officials, including the Bank of Korea governor and financial regulatory agency chief.
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Commercial paper issued by securities firms will be included in the facility’s purchase list, while an additional 3 trillion won of liquidity will be supplied by the Korea Securities Finance Corporation for securities firms experiencing temporary liquidity shortages, he said.