Following the Lehman Brothers bankruptcy of September 15, 2008, a number of foreign governments enacted stabilization measures in order to bolster their currencies and inject much-needed liquidity into domestic markets. As part of its effort, the Korean Ministry of Strategy and Finance announced a series of government interventions that included a three-year guarantee of foreign debt issued (including extensions of maturity) by domestic banks between October 20, 2008, and June 30, 2009. This opt-in program was introduced as a preemptive step in ensuring that Korean financial institutions would retain competitive access to external funding in the wake of the global credit crunch. Though the guarantee cap was set at $100 billion, maximum utilization totaled only $1.3 billion issued by a single participant (Hana Bank). On June 30, 2012, the guarantee scheme was terminated with the repayment of all obligations by Hana Bank.
Engbith, Lily S.
"The State Guarantee of External Debt of Korean Banks (South Korea GFC),"
The Journal of Financial Crises: Vol. 2
Iss. 3, 793-808.
Available at: https://elischolar.library.yale.edu/journal-of-financial-crises/vol2/iss3/41