South Korea to create 10 trillion won SPV to stabilize corporate bond market

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05/19/2020 | 07:05 pm

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)

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