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Developing foreign bond markets : The Arirang bond experience in Korea

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  • Developing foreign bond markets
  • Batten, Jonathan A.; Szilagyi, Peter G.
  • Institute for International Integration Studies


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Title Developing foreign bond markets
Similar Titles
Sub Title

The Arirang bond experience in Korea

Material Type Articles
Author(English)

Batten, Jonathan A.; Szilagyi, Peter G.

Publisher

[Dublin]:Institute for International Integration Studies

Date 2006-05
Series Title; No IIIS Discussion Paper / 138
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Financial Policy
Economy < Economic System
Holding Trinity College

Abstract

This study investigates the development of Korea’s foreign bond (Arirang) market for won-denominated foreign bonds. We provide an institutional perspective and discuss the problems, concerns and key issues related to the development of this market. We find no evidence that Arirang issuance either crowded out local debt or had exchange rate implications. Overall, the Korean experience provides valuable lessons for other emerging nations seeking to build bond markets for local and foreign issuers. Instigating market development demands an enabling infrastructure, the nurturing of local and international demand and the deregulation of capital flows. This process is demanding, as the sophistication of the local bond market does not make it appealing to foreign borrowers per se.