KDB funding to rise 20% if KoFC deal happens

State-run Korea Development Bank’s financing could increase as much as $2 billion in 2014 as the government seeks to reunite Korea Finance Corp with the policy bank by July.

The re-merger between KDB and KoFC could increase the former institution’s annual average funding of $6 billion to $7 billion by 20%, according to a senior KDB funding official.

As part of South Korea’s broader scheme to reshape the country’s policy financing, the revision bill on the KDB Act was been submitted to the National Assembly for parliamentary approval last year so that the consolidated institution could be launched in July 2014.

“If the bill passes then the merger will proceed as planned and our funding size will increase,” said the Seoul-based KDB funding official to FinanceAsia. “The annual funding size of KoFC...

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