SEOUL - SOUTH Korea's government and financial regulatory agency will meet the heads of local banks on Monday to discuss a foreign currency funding squeeze, a finance ministry said on Sunday.

Kang Man-soo, Finance Minister, and Jun Kwang-woo, chairman of the Financial Services Commission, are scheduled to attend the meeting, which will start at 7.30 am on Monday (6.30am Singapore time).

'The main subject of the meeting is the issues of a dollar funding squeeze,' a ministry official said by telephone.

South Korean banks have been facing difficulties in securing dollars in domestic dollar/won swap markets, putting pressure on the won . -- REUTERS