Bond market fund to set sail in mid-Dec.

SEOUL, Dec. 9 (Yonhap) -- Banks, insurers and brokerage houses are poised to
launch a 10-trillion-won (US$6.9 billion) bond fund in mid-December in an effort
to stabilize the local debt market, a trade association said Tuesday.

The bond fund will be in place for three years and used to purchase debts from
banks and nonfinancial companies, the Korea Federation of Banks said in a
statement.
Local commercial banks will contribute 6 trillion won into the fund with
state-run Korea Development Bank putting 2 trillion won into it. Insurance
companies are expected to chip in 1.5 trillion won with securities firms
injecting the remainder, it added.
On Nov. 24, the Bank of Korea, the country's central bank, said it will provide
up to 5 trillion won to the fund or match up to 50 percent of contributions by
financial firms in a bid to help thaw the frozen debt market.
sooyeon@yna.co.kr
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