The Korean government has released its blueprint for the second phase of its banking sector reforms announced by the Financial Supervisory Commission FSC on Wednesday.The plans are as follows
1. Nonviable banks to be merged under a government-led financial holding company
- Five domestic banks deemed nonviable by the Financial Supervisory Commission will be merged under a government-led financial holding company. The five banks are Hanvit, Peace, Kwangju, Cheju and Kyongnam Bank.
- Other healthy banks not subject to the government's fund injections can also join the financial holding company, should they wish to do so.
- The government plans to launch the holding company by the first quarter of next year and the merged banks will...