SEOUL - South Korea will announce measures on Wednesday to ease dollar funding shortages in its local market, two government officials familiar with the matter told Reuters.

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The cost of raising US dollars by swapping the South Korean won surged to a 6-year high on Friday as demand for dollar funding surged among local brokerages

The measures will aim to address heightened funding stress involved with the rising cost of raising US dollar funds in Korean financial markets, officials said on Tuesday, without elaborating.

The government is also preparing to announce follow-up measures to address market volatility and wider fallout from the fast-spreading coronavirus pandemic.

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The cost of raising US dollars by swapping the South Korean won surged to a 6-year high on Friday as demand for dollar funding surged among local brokerages.