S.Korea state-run banks to provide at least $1.5 bln support to credit union

and the Korea Development Bank said on Tuesday they had signed agreements with MG Community Credit Cooperatives for 1.5 trillion won and an amount between 0.5 to 2.0 trillion won, respectively.

"MGCCC is not yet in need of all the funds, it seems, but the government is preparing a back-up tool in advance as it cannot leave the credit union continuing to sell bonds," said Kim Sang-man, a credit analyst at Hana Securities. There have not been any indications so far that the situation at MGCCC is affecting South Korea's major commercial banks. Credit default swap premiums at the lenders were little changed this month after a spike late last year.

The five-year Woori Bank CDS was quoted at 45.33 on Tuesday, according to Refinitiv data, compared with 45.29 at the end of June and a five-year high of 75.17 in early November. Kookmin Bank's CDS was quoted at 51.59, compared with 75.18 last November.

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Exclusive: South Korea asks banks to prepare $4 billion to support credit unionSouth Korea's financial services regulator has asked major commercial banks to prepare around $4 billion in financing to support a credit cooperative hit by customer withdrawals, two banking sources familiar with the matter said on Monday.
Source: Reuters - 🏆 2. / 97 Read more »

Exclusive: South Korea asks banks to prepare $4 bln to support credit union -sourcesSouth Korea's financial services regulator has asked major commercial banks to prepare around $4 billion in financing to support a credit cooperative hit by customer withdrawals, two banking sources familiar with the matter said on Monday.
Source: Reuters - 🏆 2. / 97 Read more »