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The debate over what role Korea's central bank should play in the process of corporate restructuring is heating up Facing pressure from the government to step up its part in tackling corporate debt, the Bank of Korea seems to be engaged in a careful act of balancing

For details we turn to Hwang Ji-hye Corporate restructuring is a crucial task the Korean economy is facing and the Bank of Korea says it will actively play its part that's deemed necessary in the process Governor Lee Ju-yeol on Monday urged senior central bank officials to closely study what kind of role the BOK can play

Lee also asked officials to thoroughly discuss issues related to raising capital for state-owned banks to support the government's restructuring drive in a task force of related ministries and regulatory bodies set to launch later this week The governor's comments come as pressure piles up on the BOK to engage in providing the funds needed for overhauling the country's cash-strapped shipping and shipbuilding companies

Calls are growing, especially from the government, for the central bank to execute its authority to pump out more currency and buy up bonds of state banks, referred to as Korea's own quantitative easing Over the weekend, Finance Minister Yoo Il-ho said

financing the costs of corporate restructuring should be done through policies that combine both fiscal and monetary measures Ahead of those remarks, however, Bank of Korea Deputy Governor Yoon Myun-shik said Friday that necessary funds for restructuring should come from state coffers Experts say

the governor's remarks on Monday are in effort to tame speculation that a rift may be opening up between the government and the central bank And all eyes are now on what kind of measures, if any, the two chiefs — Minister Yoo and Governor Lee–will be able to come up with when they meet in Frankfurt, Germany for an annual meeting of the Asian Development Bank this week Hwang Ji-hye, Arirang News

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