Last week, the Bank of Korea (BOK) held an unscheduled Monetary Policy Committee and released the following decisions:

  • The BOK will pay interest worth a total of 500 billion won (approximately $350 million) on banks' required reserve deposits.
  • The BOK will include bonds issued by the Korea Housing Finance Corporation (KHFC) among the securities traded in open market operations (effective December 9, 2008).

The adopted measures are “focused on supporting expansion of banks’ credit availability,” and the “BOK will consider further measures to restore stability in the financial market in the future, including expansion of liquidity supply.”