Korea Development Leasing Corporation - Restructuring Summary Of Project Information (SPI)        Project Name    Korea - KDLC Restructuring      RegionAsia and the Pacific   Sector   Project No009488   Projected Board DateFebruary 7, 2000   Company NameKorea Development Leasing Corporation   Technical Partner and/or Major Shareholders    	The technical partner for the restructuring project is ORIX Corporation, which is currently Korea Development Leasing Corporations (KDLC) major shareholder.    Project Cost Including proposed IFC investment    	The total project cost for the restructuring is estimated at US$2.6 billion. IFC proposes to (i) extend up to KRW20 billion (US$16.5 million) as part of a KRW100 billion (US$83 million) convertible bond issued by KDLC - subscribed by ORIX Corporation and IFC; (ii) IFC will also consider an A Loan of up to US$20 million; and (iii) a B Loan of up to US$30 million subject to market demand.      Location of project and Description of site    	KDLC is headquartered in Seoul and has an additional three branches across Korea.    Description of Company and Purpose of Project    	IFC is helping to restructure Korea Development Leasing Corporation after the Korean crisis. The proposed project would represent IFC''s continued support for KDLC, in which IFC first invested in August 1977. The transaction involves supporting the efforts of KDLC to restructure its operations and financing to initiate the underwriting of new lease contracts in an emergent leasing industry.        IFC has a long-standing relationship with KDLC both as a shareholder and joint venture partner. Going forward, IFC proposes to remain engaged with KDLC as a key driver of the Company''s successful restructuring. IFC was instrumental in the establishment of KDLC''s joint venture leasing companies in Bangladesh in 1985 (Industrial Development Leasing Company of Bangladesh), in Thailand in 1991 (Ayudhya Development Leasing Co., Ltd.), and in Indonesia in 1994 (PT. KDLC BancBali Finance).   The developmental impact of the proposed project would be considerable. First and foremost, the financing that would be offered to KDLC would act as the catalyst for the underwriting of new lease contracts, thereby allowing the KDLC to re-engage the emerging leasing market. KDLC would therefore play a leading role in revitalizing the supply side of the market.   The transaction would represent a model of a lease company restructuring in action. KDLC would be one of the first firms to emerge from its restructuring and return to the market. KDLC''s restructuring, falling under the oversight of the Corporate Restructuring Coordination Committee (CRCC), is the first voluntary out-of-court, London-rules restructuring of a leasing company in Korea; out of 90 companies under CRCC-supervised restructurings, there are only two financial institutions and one leasing company. KDLC''s restructuring efforts also represent the first time in recent Korean history that foreign creditors have voluntarily agreed to write down debt for a Korean financial institutions.     The proposed project would also act as an important signal to various segments of the market. The investment is expected to highlight IFC''s confidence in the leasing industrys future as a viable and well-run business. On a broader basis, participation in this project would underscore IFC''s continued support of the Korean government''s efforts to restructure domestic financial markets.   	   Environmental Category and Issues    	This is a Financial Intermediary (FI) Type 2 project according to IFC''s environmental review procedure.  KDLC will be required to undertake an environmental review of each subproject to ensure compliance with host country requirements, IFC environmental and social safeguard policies, and, if applicable, World Bank Group environmental, health and safety guidelines. IFC will assess KDLC''s capability to carry out environmental reviews. KDLC must obtain IFC clearance prior to making any investment with IFC funds in any Category A project.           Date SPI sent to InfoShop     January 6, 2000      This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384