trending Market Intelligence /marketintelligence/en/news-insights/trending/7ZT7rkkV_GQsTQKBHxKkzQ2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Korea Development Bank to help Korea Eximbank shore up capital base

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

StreetTalk – Episode 70: Banks' Liquidity Conundrum Could Fuel M&A Activity

Korea Development Bank to help Korea Eximbank shore up capital base

KoreaDevelopment Bank will transfer part of its stake in Korea AerospaceIndustries, worth about 500 billion won, to Export-Import Bank of Korea, or Korea Eximbank, to shoreup its capital, The Korea Heraldreported May 10, citing Korea Development Bank CEO Lee Dong-geol.

Korea Development Bank, which owns a 26.75% stake in KAI,will transfer a 7.86% stake to Korea Eximbank, which has been facing a decline inits BIS adequacy ratio due to increasing exposure to debt-laden shipping andshipbuilding firms.

Korea Eximbank's current BIS adequacy ratio of 10% issignificantly lower than the 15% threshold, the publication reported. The bankreceived a capital injection of 1 trillion won from the South Korean governmentin 2015.

The news came after the Bank of Korea and the FinanceMinistry approvedproposals to increase the capital base of Korea Development Bank and Korea Eximbankas part of efforts to restructure the shipping and shipbuilding industries.

As of May 10, US$1 wasequivalent to 1,171.15 South Korean won.