The government has decided to expand its liquidity supply programs to 50 trillion won or more amid growing concerns over a liquidity crunch prompted in part by a default on debt repayment by a Legoland amusement park as well as high interest rates.

Following an emergency meeting of the country's top economic and financial officials on Sunday, the government announced that the measures worth roughly 35 billion U.S. dollars include doubling the maximum for corporate bond-buying by state-run banks to 16 trillion won.

Additional measures include a three trillion-won injection from the Korea Securities Finance Corporation into brokerage houses facing a liquidity crunch related to project-financing asset-backed commercial papers(PF-ABCP) from as early as this week.

The government will also raise the funding guarantees for local project financing cases provided by the Korea Housing and Urban Guarantee Corporation and Korea Housing Finance Corporation to ten trillion won. Bond market stabilization funds worth about 20 trillion won will also be continuously operated.

The announcement was made amid growing volatility in the money market following a default in project financing for the construction of the Legoland amusement park in Gangwon Province.