S. Korea to issue up to US$2 bln in currency bonds next year

SEOUL, Oct. 8 (Yonhap) -- South Korea's government plans to issue up to US$2
billion worth of foreign currency-denominated state bonds aimed at stabilizing
the nation's local currency market next year, the finance ministry said Thursday.
For the planned bond issuance, the ministry set aside 2.46 trillion won in its
recently-proposed budget which requires endorsement by parliament. The budget was
determined based on the won-dollar exchange rate of 1,230.
The 2010 cap compares with this year's $6 billion limit, of which $3 billion
worth of bonds has been sold. The sharp decline in the yearly debt sale limit is
ascribed to eased jitters over a possible liquidity crisis and stabilizing local
currency market.
South Korea issued $4 billion worth of currency stabilizing bonds in 1998, right
after the nation was hit by the Asian financial crisis and sold $1 billion every
year between 2003 and 2006. Last year, the ministry tried in vain to sell $1
billion worth of such debts amid deteriorating market conditions.
kokobj@yna.co.kr