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S Korea:Not Mulling Measures On Foreign Banks' Forex Liquidity

SEOUL -(Dow Jones)- The South Korean government isn't considering imposing any new measures on the foreign exchange liquidity of foreign banks operating in the country, an official from the Ministry of Strategy and Finance said Thursday, refuting recent media reports.

"With foreign banks (operating in South Korea) playing an important role in getting dollars into the nation, (imposing such measures) is not easy," the official, who declined to be named, said.

A task force within the government "has discussed such an issue, suggested by scholars, but hasn't seriously considered conducting it," he said.

Last week, officials at the finance ministry said it is mulling expanding a rule it currently imposes on local banks to foreign banks to ensure the soundness of their foreign exchange liquidity is maintained.

Due partly to the news, foreign investors sold off a massive volume of local treasury bond futures recently.

-By Kanga Kong, Dow Jones Newswires; 822-2198-2230; kanga.kong@dowjones.com

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