Finance Minister Choo Kyung-ho plans to meet with the central bank chief and top financial regulators Sunday to discuss ways to stabilize jitters in the money market caused by a default on debt linked to the construction of an amusement park.
Choo will preside over an emergency economy meeting to discuss volatility in debt markets, such as corporate bonds and commercial paper, following a default on debt payment by the developer of the Legoland amusement park in Gangwon Province, the finance ministry said Saturday.
The meeting will bring together Bank of Korea Gov. Rhee Chang-yong; Kim Joo-hyun, the chair of the Financial Services Commission; Lee Bok-hyun, chief of the Financial Supervisory Service; and Choi Sang-mok, senior presidential secretary for economic affairs.
Concerns about a possible credit crunch and jitters in the bond market have risen in the wake of a recent default on municipal government-guaranteed debt worth 205 billion won (US$143 million) raised to fund the construction of Legoland Korea.
Source: Yonhap News Agency