Banks' Decision to Roll Over All Corporate Loans Maturing in 2009

In response to the recent decision to roll over all existing Kibo and KODIT guarantees maturing for a year in 2009, nine Korean banks have pledged to roll over all existing corporate loans maturing in 2009, regardless of whether the loans are backed by the credit guarantees. The loans to companies that have shut down and bankrupt companies are not included.

The expanded payment guarantees and support from the bank recapitalisation fund are expected to allow banks to increase new lending by reducing their burden of maintaining the BIS ratios.

* Please refer to the attached PDF for details.