South Korea's State Run Banks to Supply KRW 2T to Credit Union

State-run banks in South Korea are providing at least two trillion won ($1.54 billion) in liquidity support to a credit union hit by customer withdrawals via repurchase agreements, joining commercial banks in offering financing.

On Tuesday, the Industrial Bank of Korea and the Korea Development Bank announced that they had signed agreements with MG Community Credit Cooperatives (MGCCC) for 1.5 trillion won and 0.5 to 2.0 trillion won, respectively.

According to Sources, South Korea's financial services regulator has asked major commercial banks to prepare $4 billion in financing to support the credit union.