The main focus is on helping lenders pay off foreign debts, as many are struggling to meet deadlines on long-term foreign loans. The bailout also focuses on mid-sized export companies.

Banks that receive help will be subject to more government say in their management, especially regarding CEO salaries and stock options. Government bailouts are also tied to increased responsibilities for banks to improve their credit situations.

Experts say such bold efforts, and the consensus among rival parties, show how serious things are in the financial sector.

According to Bloomberg News, prices for five-year contracts on Korea's external debt reached an annual high of 6.7 percent earlier this week, having been rising since the beginning of the month, when the rate was a little under 2 percent.

The prices are a measure of the quality of credit, and a higher price indicates lower perceived value.

Concerns and speculation keep mounting as foreign investors remain conservative when it comes to emerging markets.

Analysts here say the recent credit drought is only temporary, and that markets have yet to benefit from massive government bailouts in the U.S. and Europe.

Arirang News