S. Korea to launch W1tr fund for corporate restructuring

South Korea's financial regulator said Monday it will set up another fund of 1 trillion won ($896 million) to help companies seeking to restructure.

The fund is aimed at helping companies start their restructuring process as the nation's economy shows signs of emerging from the COVID-19 pandemic, the Financial Services Commission (FSC) said in a statement.

State-run banks, including the Korea Development Bank and the Export-Import Bank of Korea, will invest a total of 451 billion won into the fund, with the remainder to be financed from the private sector, the FSC said.

So far, the government has launched funds worth 3.2 trillion won in total for the restructuring of companies.

Of the funds, the government has invested 1.7 trillion won into 38 companies seeking restructuring. (Yonhap)