BOK to Invest 336 Billion Won into Korea Exchange Bank

The Bank of Korea (BOK) decided to invest 336 billion won into the Korea Exchange Bank(KEB) through the Korea Export Import Bank (KEIB) on January 28.
To do so, the BOK will invest 700 billion won into the KEIB by February 1 and the KEIB will invest 336 billion won into the KEB as soon as possible.
Chon Chul Hwan, BOK's president, said, 'The BOK will not get involved in the management of the KEB even if the BOK becomes the largest shareholder of the KEB. The BOK will retain the equities of the KEB only until the Ministry of Finance allows the sale of KEB equities.'
If the BOK investment is concluded, the capital adequacy ratio of the KEB will be raised by 2.5 percent from the current 8 percent level to 10.5 percent, and overseas confidence is expected to be enhanced a great deal.
Meanwhile, the KEB plans to increase capital by 1 trillion won from the current 1.4597 trillion won by way of additional issuance of stocks.