kimchi bond
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A Kimchi bond is a non-won-denominated bond issued in the South Korean market. The name refers to kimchi, a Korean side dish.[1] Woori Bank, who are credited with coining the term, define it as solely referring to bonds from foreign issuers, a definition echoed by the Ministry of Finance and Economy.[2][3] However, in practise, the term is also used to refer to non-won-denominated bond issuance by domestic entities as well.[4][5] Deutsche Bank credit themselves as having executed the first kimchi bond transaction, a US$100 million two-year floating rate note sold by South Korean company SK Global; however, the first foreign company to sell non-won-denominated bonds in the South Korean market was Bear Stearns.[2][4] Though foreign firms had long been permitted to issue won-denominated bonds, typically referred to as Arirang bonds, permission for them to issue foreign currency-denominated bonds had been slower in coming. Permission was finally granted due to the strength of the won in 2005.[3][6]
References
- ^ Gwon, Yeong-seok. "‘김치본드’ 내달 처음으로 선보인다 (Announcement: first 'Kimchi Bonds' next month)", The Hankyoreh, 2006-05-24. Retrieved on 2007-07-06.
- ^ a b "'Kimchi' bonds for Koreans", The Standard, 2006-05-25. Retrieved on 2007-07-06.
- ^ a b "Supplement to MOFE Press Release: 2nd Meeting of the Financial Hub Initiative Committee", Ministry of Finance and Economy. Retrieved on 2007-07-06.
- ^ a b (October 2006). "Deutsche Bank Group Profile: Korea" (PDF). Deutsche Bank. Retrieved on 2007-07-06.
- ^ "SK Shipping prepares kimchi", Jane's Transport Finance, 2007-06-21. Retrieved on 2007-07-06.
- ^ Kim, Jung-min. "Woori considers issuing dollar-denominated 'kimchi bond'", Herald Media, 2005-04-24. Retrieved on 2007-07-06.
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