KDB Industrial Bank. (photo = Yonhap news)

 

[Alpha Biz=(Chicago) Reporter Kim Jisun] The government will invest about KRW 2 trillion to strengthen the financial soundness of the KDB Industrial Bank.

According to the financial authorities on the 18th, the Ministry of Strategy and Finance and the Financial Services Commission will push for KRW 2 trillion worth of investment in the Korea Development Bank this month by investing in kind stocks of the Korea Land and Housing Corporation (LH). 2 trillion won is the largest investment since 2015.

Once the investment is completed, the Korea Development Bank's BIS equity capital ratio is expected to rise to the 14% level. The Korea Development Bank's BIS ratio was 13.66% as of the end of the third quarter of last year. The standard recommended by financial authorities for the soundness of banks is 13%.

If the capital ratio improves, the loan capacity increases. The Financial Services Commission earlier set a target of 212 trillion won this year for policy financial institutions such as the Industrial Bank of Korea and the Korea Credit Guarantee Fund.

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