Park Scraps Privatization Plan for Korea Development Bank
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South Korea scrapped a five-year-old proposal to sell Korea Development Bank, a signal President Park Geun Hye will use the nation’s biggest policy lender to channel more funds to companies.
The government proposes merging the lender with Korea Finance Corp. by July 2014 while selling the brokerage unit and other assets, the Financial Services Commission said in a statement today. The regulator will submit a revised version of the KDB Act, a mandate to break up holding company KDB Financial Group Inc., to parliament this year, it said.