Rules Eased on Stock Holdings

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Rules Eased on Stock Holdings

Financial institutions that exchange debt for equity of companies under restructuring plans will not be subject to the usual investment restrictions Seoul has placed on financial institutions' investments.

The Finance Ministry said Wednesday that it will modify the rules to help companies under restructuring programs.

Banks and merchant banks are limited to holding no more than 15 percent of the outstanding shares of any one company. Insurance companies can hold only 5 percent of their assets in any affiliated group of companies.

All other financial institutions are limited to 20 percent stakes in the outstanding shares of other companies.
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