SKorean Bear Stearns Losses Seen Limited

Local banks' exposure to the failed U.S. investment bank totals 40 billion won (US$39 million; euro25 million), mostly comprising bonds and synthetic collateralized debt obligations, the financial market watchdog said in a statement.

Securities firms' exposure is estimated at 211.1 billion won (US$206 million; euro131 million), the regulator said, and insurers' exposure at 192 billion won (US$188 million; euro119 million).

"Local financial companies' financial losses will be very limited because JPMorgan Chase Bank will take on Bear Stearns' debt and securities," the regulator said.

JPMorgan Chase announced Sunday night that it would acquire Bear Stearns for US$236.2 million (euro149.78 million) in a deal that was pushed by the U.S. government to avoid a bankruptcy related to the bank's exposure to the subprime mortgage market.