South Korea's central bank said Thursday it will end a special program to buy corporate bonds, including low-rated debts, at the end of this month as planned as the financial market has stabilized.

The Bank of Korea (BOK) and the state-run Korea Development Bank (KDB) launched a 10 trillion-won ($8.4 billion) program in July last year to purchase corporate bonds and commercial paper, a move aimed at easing a corporate funding squeeze. The program has been extended twice and is set to end on Dec. 31.

The central bank and the policy lender said they will end the bond-buying program as scheduled as the financial market has improved.

The move is part of the country's efforts to roll back emergency measures introduced to cope with the fallout of the pandemic.

The BOK said it will maintain readiness to resume the operation of the special purpose vehicle to brace for a possible increase in the financial market.

The central bank added its monetary policy board approved a move to extend the maturity of its loans to the program. In January, the BOK lent 1.78 trillion won to the program with a one-year maturity. (Yonhap)