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Change Your Life! |
4 percent ceiling in South Korea |
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News |
June 16, 2000
SEOUL, South Korea (AP) - The South Korean government is proposing a 4 percent ceiling on stakes in bank holding companies, the Financial Supervisory Service, or FSS, said Thursday.
The ownership limit is the same as the one already imposed on commercial banks to limit the control of the country's major conglomerates, or chaebol, over banks.
Individuals with business interests restricted to the financial sector are exempted from the ownership ceiling on bank holding companies.
The proposed limit has been included in legislation pending in the National Assembly. The FSS said that this will permit the formation of financial holding companies for the first time.
The Korean government is encouraging the formation of financial holding companies to facilitate mergers among banks and to speed up restructuring of the financial sector.
However, no ownership limit has been proposed for non-bank financial holding companies, as there are no such limits on non-bank financial institutions, said the FSS. |