The government said Friday that it has sold a 3.8 percent stake, or 21 million shares, in the Industrial Bank of Korea (IBK) as part of efforts to raise money needed to meet growing fiscal spending.

The sale was held before the opening of the stock market on Friday at 14,800 won (US$13.3) apiece, which was 2.3 percent lower than the previous day's closing price. The government raised 310.8 billion won in the process, according to the finance ministry. 

As a result, the government's stake in the IBK was lowered from 55 percent to 51.2 percent. The shares were sold evenly to foreign and local investors, the ministry said. 

The government has been pushing to trim its stake in the policy bank for small and medium-sized businesses to 50 percent plus one.

The plan was aimed at reducing its share holdings in the bank and securing money needed for the government's expanded fiscal spending. (Yonhap)