The FSC announced the plan to reshape policy banks in order to streamline their overlapping functions and reinforce their policy financing roles for start-ups and SMEs, new growth industries, and overseas projects.
According to the plan the Korea Finance Corporation (KoFC) will be re-merged with Korea Development Bank (KDB) to form ‘consolidated KDB’. Moreover, KDB Financial Group. Inc will be merged with KDB, while its subsidiary units will be put up for sale.
The government will maintain its controlling stake in KDB and some portions could be divested through IPO.
The plan is expected to expand policy banks’ financial assistance for start-up companies and technology based innovative SMEs.
Read press release -> http://www.fsc.go.kr/downManager?bbsid=BBS0048&no=85070