SEOUL, Aug. 7 (Yonhap) -- South Korea's top financial regulator is moving to set up a consultative body to support overseas mergers and acquisitions (M&As) by local materials, parts and equipment makers, sources said Wednesday.
The move comes days after the government unveiled its plans to back overseas M&As in a bid to hone the competitiveness of those sectors in response to Japan's export restrictions.
According to the sources, the Financial Services Commission (FSC) will join hands with the nation's three state banks -- the Korea Development Bank, the Export-Import Bank of Korea and the Industrial Bank of Korea -- to launch the M&A financing consultative body late this month.
The envisioned body will also include several local branches of global investment banks.
An FSC official said all participating institutions have agreed to form the consultative body, with operational specifics in the making.
It will be tasked with helping fund local companies' overseas M&As, finding target firms and providing consulting services.
The body will also help South Korean materials, parts and equipment companies obtain core technologies from abroad or secure supply lines.
The three state lenders currently have a combined 4 trillion won (US$3.29 billion) for that purpose, according to the sources.
Japan imposed controls on exports of three key materials used in making chips to South Korea on July 4 in an escalation of a dispute over wartime forced labor.
Last week, Japan removed South Korea from its export friendly country list, prompting Seoul to come up with measures to nurture its materials, parts and equipment sectors.
BOK to be on hold this time, but possible rate cut ahead
Possibility of S. Korean rate cut looms after U.S. rate reduction
Foreign capital inflows indicate room for S. Korean monetary policy
BOK's rate cut on the table amid increased downside risks
BOK faces quandary over call for rate cut