The Bank of Korea says it will supply an "unlimited amount of liquidity" to financial firms over the next three months to help prevent a credit crunch stemming from the coronavirus pandemic.
The central bank said on Thursday that it will regularly purchase local bonds in repo operations every week until the end of June and expand the list of firms and securities subject to its repo operations.
The measure will take effect next month.
This comes after the government doubled an emergency financing aid package this week to 100 trillion won to support local businesses and financial markets, including stabilization funds for both stock and bond markets amid continued market jitters.■
<Photo: Yonhap News>
