The nation’s five major financial groups pledged 95 trillion won in liquidity by the year's end after a 205 billion won default by a project financing contractor for Legoland Korea sparked a liquidity crunch.
 
The announcement was made on Tuesday following a meeting between Financial Services Commission(FSC) Chairman Kim Joo-hyun and the heads of the five financial groups – KB, Shinhan, Hana, Woori and NongHyup.

The FSC chief underscored the groups' role and responsibility within the local financial market as he requested the provision of an amount worth approximately 67 billion U.S. dollars in liquidity.

He also asked the groups to continue to offer credit to small- to medium-sized enterprises(SMEs) with higher capital requirements and to support vulnerable borrowers that have been disqualified from financial institutions.

Of the pledged amount, 73 trillion won will be used to expand market liquidity, another 12 trillion won towards bond and securities market stability funds and the remaining ten trillion won for the financing of group affiliates.

Despite Gangwon Province's plans to repay the overdue debt, its initial decision not to honor the credit guarantee for the theme park caused a liquidity crunch in the nation's bond market amid skepticism over papers linked to central or municipal governments.