S. Korea sees EU debt impacting lending

South Korean President Lee Myung-bak is urging banks not to reduce lending to small- and medium-sized companies in the coming year. Lee, speaking Friday at a 2012 financial policy briefing, said Europe's debt crisis is expected to weigh on South Korea but warned banks against possible lending cuts, Yonhap News Agency reported. The president also called for increased financial transparency in the banking industry after 16 savings banks were suspended in 2011 because of corruption and deteriorating assets. "The financial industry cannot develop itself and will only be able to achieve its development if it cooperates with the financial regulator and businesses," Lee was quoted as saying.