By Prudence Ho 

HONG KONG--The government of South Korea is raising about $242 million by selling shares in Industrial Bank of Korea.

The Ministry of Strategy & Finance is selling 19.2 million shares in the lender at a fixed price of 13,000 won (US$12.65) per share, or a 4.8% discount of Thursday's closing price of 13,650 won, according to a term sheet seen by The Wall Street Journal Thursday.

The government is barred from selling any additional shares for 90 days.

Bank of America Merrill Lynch, J.P. Morgan Chase & Co., Korea Investment & Securities and Samsung Securities are handling the share sale, said in the term sheet.

IBK was established in 1961 as a policy bank to support small- and midsize businesses, and went public in 2003.

Write to Prudence Ho at prudence.ho@wsj.com

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