Korea's deposit insurer borrows money from banks
South Korea's state deposit insurer took out commercial bank emergency loans, according to a Yonhap News Agency report.
Borrowings by Korea Deposit Insurance Corp. has secured a US$2.69 billion credit line from commercial banks through open bidding, which will be used to pay customers of seven suspended savings banks part of their deposits and help restructure them.
The Financial Services Commission, Korea's financial watchdog, has been cranking up efforts to weed out troubled savings banks and restructure the industry, which is beleaguered by increasing insolvent project financing loans.