South Korea to impose levy on banks' foreign debt
South Korea said on Sunday it would impose a levy on banks' foreign debt from late 2011, the latest capital controls it adopted to mitigate the impact a sudden reversal in capital flows may have on its economy.
In an effort to shore up domestic banks and keep its currency and stock markets from sinking further, South Korea announced Sunday that it would guarantee as much as $100 billion in foreign debt held by its banks and would pump an additional $30 billion into the banking sector.