South Korea hopes bailout will stabilise currency
Updated
South Korea's government hopes a multi-billion dollar financial package will provide stability for the country's exchange rate.
Our North Asia correspondent Shane McLeod reports South Korea's government has unveiled a proposal to provide up to $US100 billion in payment guarantees for its domesic banks in a bid to stabilise fluctuating foreign exchange markets.
Last week South Korea's currency, the won, fell to levels not seen since the Asian financial crisis more than ten years ago.
South Korea's central bank will provide additional dollar resources to domestic banks from its own foreign exchange reserves, while the government will inject almost a billion dollars of capital into a state-owned bank to boost lending to small and medium sized businesses.
