Korea to start imposing bank levy on foreign borrowing

South Korea plans to impose a levy on banks' foreign borrowing starting in August.

This is to prevent excessive capital flows from hurting the nation's financial and economic stability, the finance ministry said.

The move comes after the government announced last December that it will start to impose a tax on non-deposit foreign borrowing from the second half of this year to regulate excessive capital movement. A related bill passed the National Assembly earlier this month.