Korea

A Seoul court has granted an injunction against FSS sanctions that would have prevented chairman Sohn Tae-seung from seeking another term at Woori Financial Group.

South Korean authorities will also reduce the amount of high-quality foreign assets banks need to hold to free up additional US dollar liquidity.

The 100-trillion-won package includes funding for businesses, two market stabilisation funds, support for new bond issuance and liquidity support for brokerage firms.

The new system will use non-financial and transaction information of SMEs and small merchants to generate credit scores, improving their ability to obtain financing and credit guarantees.

Temporary currency swap lines will be established with 9 central banks - including BOK, RBA, MAS and RBNZ - to lessen the strain on US dollar funding markets.

The government has also decided on emergency financial measures worth 50 trillion won to support SMEs and individuals with low credit ratings.

Under the legislation, six sales regulations will be applied to all financial products, where sellers will be subject to stricter penalties and possible sales bans for violations.

The limits on banks' foreign currency forward positions will be raised to guard against a US dollar funding shortage amid a mass exodus of foreign capital.

The revision bill was introduced last November, and passed on 5 March. The government has now approved the revision act at a cabinet meeting on 17 March.

Bank of Korea has cut its key rate by 50 basis points to 0.75 percent, joining other central banks unveiling emergency measures to fight the coronavirus outbreak.