South Korea Moves $130 Billion Rescue Plan for Finance Sector
South Korea became the latest country to bail out its financial system by offering a $30 billion rescue package for its banking sector as well as backing foreign currency debts of its lenders worth $100 billion. The measures come in the wake of a global market crisis whose impact has left finance sectors of several national economies in shambles.
The finance rescue plan was unveiled by the South Korean government on Sunday and it led to a marginal rise in its currency on Monday morning as won gained 4.1% 1280.80 against the US dollar. The Kospi stock market however remained largely unchanged with the index losing 0.3% to rest at 1177.11 at 9:29 a.m at Seoul on Monday morning after an initial rise of 1.3 %
South Korea’s currency has taken a huge battering in recent times and has emerged as one of the worst=performing currencies in Asia. Likewise its stock market has lost as much as 38% this year. With its government initiatives, South Korea joins Europe, Hong Kong and Australia in providing banks with state guarantees in order to ease global lending which had dropped alarmingly in the aftermath of the world finance crisis and loss of confidence among lenders.
