Nov. 4 (Bloomberg) -- Korea Finance Corp., an agency formed from state-run Korea Development Bank last month, plans to sell as much as 1.5 trillion won ($1.3 billion) in bonds this year for working capital, said a person familiar with the matter.

The notes will have maturities from one to five years and may be followed by foreign-currency note sales next year, said the person, who asked not to be named as the plan is private.

Korea Finance was formed on Oct. 28 as a spin-off from Korea Development, which is being privatized under South Korean President Lee Myung Bak’s program to make the country’s financial services industry more competitive.

Korea Finance said it took over 16 trillion won in bonds from Korea Development, with 9 trillion won of debt due to mature in 2010.

To contact the reporter on this story: Jungmin Hong in Seoul at jhong47@bloomberg.net

Last Updated: November 4, 2009 03:54 EST