Korea: bonds

The bond market in the Republic of Korea is one of the largest markets in Asia. Various reforms have led to its rapid development, including gradual market liberalization. All fixed-income instruments are available to foreign investors. The Government continues to issue treasury bonds on a regular basis with maturities of 3, 5, and 10 years. The 3-year bond is the most liquid. However, due to increased issuance of 5-year maturities in 2008, it is also now included as a benchmark. In Korea a corporate issuer should be rated by at least two credit rating agencies.

Bonds in the Republic of Korea can be classified into two main types: government and corporate. The government bond market consists of treasury bonds, National Housing Bonds, and Seoul Metropolitan Subway Bonds. It also includes the central bank's monetary stabilization bonds, as well as financial debentures issued by the Korea Development Bank. Government bonds are the most traded asset class and form the basis for benchmark yields.

Outstanding bond issues

Сurrency Outstanding bond issues Cumulative volume
sovereign
KRW 52 533 495 926 000 000
USD 5 4 900 000 000
EUR 3 1 125 000 000
corporate
USD 335 98 321 045 000
CNY 45 20 146 000 000
HKD 37 15 199 000 000
AUD 31 5 837 600 000
EUR 22 5 559 290 000
JPY 19 288 420 000 000
CHF 16 3 335 000 000
NZD 9 1 421 000 000
SGD 6 880 750 000
NOK 6 1 850 000 000
BRL 5 1 713 720 000
CAD 4 825 000 000
INR 4 10 444 700 000
GBP 4 610 000 000
IDR 3 2 680 000 000 000
KRW 3 661 200 000 000
TRY 2 180 000 000
ZAR 1 653 600 000
RUR 1 660 000 000
MXN 1 2 100 000 000
SEK 1 720 000 000

Sovereign rating

Rating AgencyRatingRating scaleDate
Dagong Credit *** International scale rating (foreign curr.) ***
Dagong Credit *** International scale rating (local curr.) ***
Organisation for Economic Co-operation and Development (OECD) *** Country Risk Classifications ***
Moody's Investors Service *** LT- foreign currency ***
Moody's Investors Service *** LT- local currency ***
S&P Global Ratings *** Foreign Currency LT ***
S&P Global Ratings *** Local Currency LT ***
Fitch Ratings *** LT Int. Scale (foreign curr.) ***
Fitch Ratings *** LT Int. Scale (local curr.) ***
Rating Agency RAEX (Expert RA) *** Foriegn curr. scale ***
Rating Agency RAEX (Expert RA) *** Local curr. scale ***
National Rating Agency *** Global scale ***
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Latest bond issues

issue ISIN coupon volume end of placement maturity date
Hanwha Galleria, FRN 24may2020, USD - International bonds XS1608407224 3M LIBOR USD + 1% 30 000 000  USD 05/22/2017 05/24/2020
KEXIM, 0.5% 30may2022, EUR - International bonds XS1619861864 0.5% 750 000 000  EUR 05/22/2017 05/30/2022
Kookmin Bank, FRN 26may2022, USD - International bonds XS1619361469 3M LIBOR USD + 0.82% 35 000 000  USD 05/17/2017 05/26/2022
K-water (Korea Water Resources), 2.75% 23may2022, USD - International bonds XS1617140626 2.75% 350 000 000  USD 05/16/2017 05/23/2022
Hi-tech Service, FRN 20may2019, USD - International bonds XS1601315945 3M LIBOR USD + 0.9% 7 500 000  USD 05/16/2017 05/20/2019
Interconstech, FRN 20may2019, USD - International bonds XS1601341784 3M LIBOR USD + 0.9% 17 000 000  USD 05/16/2017 05/20/2019
Hyundai Capital Services, 0% 18jun2018, EUR (396D) - International bonds XS1616352784 0% 65 000 000  EUR 05/12/2017 06/18/2018
Korea Expressway, 0.25% 7jun2024, CHF - International bonds CH0365501508 0.25% 230 000 000  CHF 05/10/2017 06/07/2024
Hyundai Motor, FRN 18nov2018, EUR - International bonds XS1615085948 0.019% 135 000 000  EUR 05/10/2017 11/18/2018
Woori Bank, 5.25% perp., USD - International bonds US98105HAF73 5.25% 500 000 000  USD 05/08/2017

World Bond market statistics

Quarterly indices

Type IV 2016 III 2016 II 2016 I 2016 IV 2015 III 2015 II 2015
BIS volume of international-bond market of emerging countries
Korean international bonds, USD bln 168.100 172.600 171.400 174.700 173.200 177.800 180.100
BIS net issues of international-bond market of emerging countries
International-bond net issue of Korea, USD bln 2.100 1.000 3.000 -0.200 -4.100 -0.500 4.000

Emerging Markets International Bonds

Monthly indices

Type Apr 2017 Mar 2017 Feb 2017 Jan 2017 Dec 2016 Nov 2016 Oct 2016
Asian International Bonds Markets
Korea’s international bonds, USD bln 129.364 131.625 130.688 129.851 130.360 129.718 131.174
Korea’s corporate international bonds, USD bln 123.238 125.525 124.596 123.736 125.275 124.126 125.539
Korea’s sovereign international bonds, USD bln 6.125 6.100 6.092 6.115 5.085 5.592 5.635
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Credit Risk Indicators

Daily indices

Type: 05/19/2017 05/18/2017 05/17/2017 05/16/2017 05/15/2017 05/12/2017 05/11/2017
CDS Interactive Data 
CDS 6M Korea * * * * * * *
CDS 1Y Korea * * * * * * *
CDS 2Y Korea * * * * * * *
CDS 3Y Korea * * * * * * *
CDS 4Y Korea * * * * * * *
CDS 5Y Korea * * * * * * *
CDS 7Y Korea * * * * * * *
CDS 10Y Korea * * * * * * *
CDS 15Y Korea * * * * * * *
CDS 20Y Korea * * * * * * *
CDS 30Y Korea * * * * * * *
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Macroeconomic Indicators (World economy)

Monthly indices

Type Apr 2017 Mar 2017 Feb 2017 Jan 2017
Inflation Rate (World), % to the same period of the previous year
Inflation Rate (South Korea) 1.90 2.20 1.90 2.00
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Yearly indices

Type 2015 2014
Government Debt to GDP (World), %
Government Debt to GDP(South Korea) 37.80 35.90

Stock market (World)

Daily indices

Type: 05/22/2017 05/19/2017 05/18/2017 05/17/2017 05/16/2017 05/15/2017 05/12/2017
Stock market (Asia)
KOSPI  2 304.03 2 288.48 2 286.82 2 293.08 2 295.33 2 290.65 2 286.02
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JP Morgan

Daily indices

Type: 08/20/2013 08/19/2013 08/16/2013 08/15/2013 08/14/2013 08/13/2013 08/12/2013
CEMBI (publication was suspended since 20.08.2013) 
CEMBI Korea * * * * * * *
ELMI (publication was suspended since 20.08.2013) 
ELMI South Korea * * * * * * *
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