UPDATE 1-G20 to discuss bank levy, capital controls -S.Korea

* Finance minister details topics at June 4-5 meetings

* Reaffirms it is premature to withdraw stimulus policy
(Adds quotes)

SEOUL, June 1 (BestGrowthStock) – The proposed introduction of a bank
levy and possible ways to control cross-border capital flows will
top the agenda at this week’s G20 finance ministers meetings,
host South Korea said on Tuesday.

Finance Minister Yoon Jeung-hyun also told an unscheduled
media briefing that the euro zone’s debt crisis was becoming a
factor that would delay policy “exit strategies” in some
countries.

“I expect the bank levy issue to be discussed as an important
agenda,” he said, referring to the proposed move aimed at making
banks pay for the future bailouts of financial institutions.

Finance ministers and central bank heads from the Group of 20
leading economies meet in Busan, South Korea, on Friday and
Saturday to fine-tune their views on key global issues before
their leaders hold a summit later in the month in Canada.

There is broad support for the proposal but some countries,
which experienced no heavy cost of bailing out financial
institutions, are opposed to it.

Yoon said drawing up some form of regulations to cushion the
capital flows across countries would also likely be discussed at
the meetings.

“The IMF’s position has also changed (toward introducing
controls),” he said.

Regarding the domestic economy, Yoon said the government’s
position was to maintain its existing economic policy because
private sector recovery was not yet fully self-sustaining.

But he played down the slowing pace of annual growth in the
statistics agency’s composite leading indicator in recent months,
which many analysts took as underlining the moderating recovery
of Asia’s fourth-largest economy. [ID:nSEL003108]

Stock Analysis
(Reporting by Lee Shin-hyung, writing by Yoo Choonsik; Editing
by Jacqueline Wong)

UPDATE 1-G20 to discuss bank levy, capital controls -S.Korea