Korea awaits market resurgence

Korea’s total bond issuance this year, while comparable to levels in 1999, has proved disappointing for many bankers. The government has dealt with many concerns about corporate and financial transparency and most agree that market governance is now at commendable levels. On the back of these efforts, and admirable GDP growth, a revitalisation in the issuance pipeline was anticipated. Instead, the market has watched spreads on Korean debt expand alarmingly on the back of international volatility and domestic concerns about corporate and financial restructuring, forcing potential issuers either out of the market or to search for alternative financing. Richard Morrow reports.