LEHMAN'S BANKRUPTCY TO HAVE 'LIMITED' IMPACT ON S. KOREA: OFFICIAL

The insolvency safety filing by worldwide investment bank Lehman Brothers Holdings Inc. will contain a "limited" crash on South Korea's economic market, a superior financial representative said Monday, speeding up to soothe anxiety over the progress.

Vice President Rhee Chang-Yong of FSC said "We have been building measures for (Lehman's insolvency safety filing)." "The straight exposure by domestic financial institutes to Lehman Brothers will be restricted."
"There would be not direct impact from the Lehman tragedy if its insolvency filing shakes the worldwide monetary markets," Rhee said, "(other than) there are no liquidity troubles that can be sparked by the Lehman trouble."
The remarks come as the 158-year-old depositor apparently filed for insolvency, burdened by US$60 billion in soured real-estate holdings.
Lehman Brothers have strived in ineffective to find associates who can make available a lifeline subsequent to the most horrible credit crisis in decades. South Korea's state-run Korea Development Bank freshly withdrew its bid to purchase the beleaguered investor. Analysts and marketplace watchers are stimulating for the most horrible ever start of Wall Street this week. The Korean stock market will begin on Tuesday after the three-day Chuseok local holiday ends here on Monday. According to manufacturing sources, domestic monetary institutions invested extra than $700 million in the world's fourth-largest asset bank.
The FSC convene a crisis meeting to talk about countermeasures and is likely to declare details later on in the day on the coverage of domestic monetary institutions to Lehman-related reserves, sources close up to the stuff said.