A debate is raging over how to recapitalize the two state-run banks that have to lead the government‘s corporate restructuring process.

The Korea Development Bank and the Export-Import Bank of Korea are in urgent need of capital increases as restructuring of the troubled shipping and shipbuilding industries is gathering pace.

The two banks have to play a central role in revamping the key companies of the two industrial sectors, as commercial banks are dragging their feet in providing further support to them.

While recapitalization of the two banks is a pressing issue, disputes over how to handle it are deepening among the government, opposition parties and the Bank of Korea.

The government is pushing for what it calls a Korean version of quantitative easing. The plan calls for the central bank to print money to provide sufficient funds for the two policy lenders.

The government argues that this is the quickest way to recapitalize the two banks. It also asserts that printing money to expedite corporate restructuring would not cause serious negative effects on the economy.

But the central bank has voiced reservations about this approach. The bank’s deputy governor said Friday that printing money for corporate restructuring would require a public consensus on it.

What the official meant by public consensus is an endorsement of the idea by the three major political parties. Yet there is very little likelihood of that happening.

The Minjoo Party of Korea and the People’s Party, the two biggest opposition parties, are opposed to the option. They argue that the right way to recapitalize the two state-run lenders is to inject budgetary funds into them.

They assert that the government is reluctant to take this path because it entails parliamentary supervision of the restructuring process.

They also note that if the central bank agrees to print money at the government’s request, it would not only hurt its own independence but set a bad precedent.

Despite opposition from the two opposition parties and the central bank, the government refuses to back down from its position.

One reason is the practical difficulty the government faces in securing the budgetary funds needed to recapitalize the banks.

To raise the funds, the government needs to draw up a supplementary budget. But the government can push for an extra budget only when economic conditions worsen or there is massive unemployment. Bank recapitalization does not constitute sufficient cause for a supplementary budget.

Amid an intensifying debate over the issue, the government is to launch a task force on Tuesday to explore its options. The participating officials need to come up with a solution early as corporate restructuring should not be delayed further.