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BUSINESS KOREA

June 13, 2000, Tuesday

HEADLINE: Banking Sector Likely To See Additional Insolvencies Worth 2-3 Trln.
  
Under the forward looking criteria, the new asset classification criteria applied to the domestic banking sector, it is now expected that banks will see an additional 2-3 trillion won worth of defaults in 2000.

The Financial Supervisory Commission (FSC) said on Monday that it valued the potential defaults of domestic provincial, commercial and state- run banks, and reported the results on Saturday through the Financial Supervisory Service (FSS).

Provincial banks saw an additional 20-80 billion won worth of insolvencies, while commercial banks saw 200-400 billion worth of additional insolvencies under the new, stricter asset evaluation policies, the FSC said.