A special purpose vehicle set up for the PF-ABCP purchasing program will buy up to 1.8 trillion won ($1.33 billion) by May 30, 2023, the Korea Financial Investment Association said in a statement.
Among the program participants, the Korea Securities Finance Corp and the Korea Development Bank will buy 25% each, followed by nine securities firms taking a combined 25%.
Earlier the month, the country’s top financial groups agreed with financial authorities to help supply sufficient liquidity to the local money and bond markets through various programmes of a combined 95 trillion won.
In South Korea’s money markets, worries about a liquidity crunch heightened after a missed bond payment by the developer of a South Korean theme park last month.
($1 = 1,352.5800 won)
(Reporting by Jihoon Lee, Editing by Louise Heavens)