Government to Inject 2 Trillion Won into Korea Development Bank This Month

The government will inject 2 trillion won in funds into the Korea Development Bank.

According to financial authorities on the 17th, the Ministry of Economy and Finance and the Financial Services Commission are proceeding with procedures to complete a capital injection of 2 trillion won into the Korea Development Bank this month by contributing state-owned enterprise stocks they currently hold as in-kind contributions.

A Financial Services Commission official said, "There is a lot of policy finance support through the Korea Development Bank this year," adding, "Capital capacity is needed for this, so the capital injection is being carried out."

Seoul Industrial Bank Headquarters [Image source=Yonhap News]

The Financial Services Commission has set the funding supply target for this year at 212 trillion won for policy finance institutions including the Korea Development Bank, Industrial Bank of Korea, and Korea Credit Guarantee Fund.

Once the capital injection is completed, the financial soundness of the Korea Development Bank is also expected to improve. As of the end of the third quarter last year, the bank's Basel Committee on Banking Supervision (BIS) capital adequacy ratio was 13.66%. Financial authorities recommend maintaining a BIS ratio above 13% to ensure bank soundness.