...IDRs Equalised with Sovereign's: Korea Development Bank's (KDB) IDRs are equalised with those on the Korea sovereign due to the bank's important policy role of offering credits to promote development of local industry and infrastructure, and its role in leading corporate restructuring. It also reflects the state's full ownership of KDB and de facto solvency guarantee in the legal form of loss absorption as stated in the bank's establishment act. Important Restructuring Role: KDB's policy function is underscored by its prominent role in restructuring weak industrial sectors over the past decade. KDB's support to troubled industries, such as shipping and shipbuilding, has contributed to the banking system's stability and the country's economy. The government's capital injections totalling KRW2.8 trillion in 2015-2017 supported KDB's capital buffers against significant credit losses related to the restructuring. Focus on Sustainability: KDB's strategic focus has shifted to sustainability and...
