[2022 National Audit] Kang Seok-hoon, KDB Chairman, "Prompt Deployment of Chaean Fund to Address Legoland-Induced Liquidity Crunch"

[Image source=Yonhap News]

[Asia Economy reporters Song Hwajeong and Yoo Jehoon] Kang Seok-hoon, chairman of the Korea Development Bank, announced that he will actively respond to the liquidity crunch of asset-backed commercial paper (ABCP) triggered by Legoland by injecting 1.6 trillion won from the Bond Stabilization Fund.

Chairman Kang made this remark on the 20th during the National Assembly's Finance and Economy Committee audit when Rep. Song Seok-jun of the People Power Party inquired about the status of the Korea Development Bank's Bond Stabilization Fund formation.

Rep. Song said, "Not only Gangwon-ro Legoland but also several local governments have signed loan purchase commitments to reinforce the credit of ABCP cases, which are now facing a serious crisis as potential powder kegs," adding, "I understand that the Korea Development Bank is also operating a bond stabilization fund."

In response, Chairman Kang said, "The Korea Development Bank has formed about 3 trillion won in the Bond Stabilization Fund, used 1.4 trillion won, and has 1.6 trillion won remaining," adding, "We will promptly inject this to actively respond to the liquidity crunch of Legoland-related ABCP. Also, I understand that the Financial Services Commission is handling the Legoland-related real estate project finance (PF) ABCP."

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