Financial Services Commission Chairman on Legoland-driven bond market turmoil: "Rapid purchase of Chaean Fund... Immediate preparation for capital call"

[Asia Economy Reporter Lee Jung-yoon] Regarding the recent Gangwon-do Legoland real estate project financing (PF) asset-backed commercial paper (ABCP) crisis, Financial Services Commission Chairman Kim Ju-hyun announced on the 20th that "we will promptly resume purchases using 1.6 trillion won of surplus funds from the Channel Fund and immediately prepare for additional capital calls."

On this day, Chairman Kim made this announcement through the 'Special Instructions from the Financial Services Commission Chairman for Market Stabilization.'

He also stated, "We are closely monitoring the recent increase in volatility in the short-term funding market with vigilance," adding, "We are particularly conducting thorough monitoring of market instability factors spreading after the Gangwon-do PF-ABCP related issues."

The Financial Services Commission plans to actively implement liquidity support through Korea Securities Finance and also intends to ease some liquidity regulations, such as postponing the normalization of the Liquidity Coverage Ratio (LCR) regulatory ratio for banks.

Chairman Kim further added, "Regarding the real estate PF market, we plan to promptly prepare and announce financial support programs if necessary to prevent the spread of market instability."

This content was produced with the assistance of AI translation services.