South Korea to create 10 trillion won SPV to stabilize corporate bond market
South Korea's finance minister on Wednesday said the government and the central bank will set up a 10 trillion won ($8.2 billion) special purpose vehicle to directly purchase commercial paper.
Speaking at a policy meeting, Hong Nam-ki said the SPV will buy subprime debt as well as bonds with high credit ratings for a six-month period.
Hong also said fresh measures to create jobs will be a central part of the government's bi-annual economic policy plan due in early June.
($1 = 1,224.8500 won)
(Reporting by Cynthia Kim; Editing by Chris Reese)