Korea's financial regulator said Wednesday it has approved a plan to increase capital of South Korea's state-run trade bank by 1 trillion won ($926 million) in a bid to help the lender's capacity to support exporters.
The Financial Services Commission said the government plans to pass on shares in the state-run Korea Express Corp. held by policy lender Korea Finance Corp. (KoFc) to the Export-Import Bank of Korea (Eximbank).
The capital increase will be completed on Friday if the boards of directors at Eximbank and the KoFc give the green light, it said.
"The move aims to help Eximbank smoothly provide financial support to local firms seeking for overseas projects," the watchdog said in a statement.
The move will boost Eximbank's capacity to offer financial support to around 10 trillion won, the government said. Eximbank's equity capital stood at 6.8 trillion won as of the end of December. (Yonhap)