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Home > mk Business News 프린트 이메일 전송 리스트
Gov’t seeks to boost high-yield bond market
2013.02.06 18:27:35 | 2013.02.06 18:28:15

[Gov’t seeks to boost high-yield bond market] 기사의 본문 이미지

The South Korean government is seeking ways to promote the high-yield bond market in a bid to alleviate liquidity shortage problems faced by small and mid-size businesses (SMBs).

Korea’s financial authorities, credit rating agencies and securities firms reportedly have discussed ways to issue high-yield bonds secured against SMB loans at banks, according to sources in the financial investment industry Wednesday. High-yield bonds refer to a bond rated ‘BB’ or lower because of its higher default risk. In Korea, most bonds issued by SMBs are tagged as such risky bonds.

At present, the government has been leading efforts to provide financial support for SMBs. This results in increased fiscal burden on the government and improper oversight and supervision of SMB recipients which even spawns ‘moral hazard’.

As a solution, the new plan aims at minimizing the government’s direct financial support for SMBs and promoting more private investments to flow into SMBs.

Recently, local SMBs find it challengeable to raise funds directly in the capital market through corporate bond issuances. Out of the total corporate bonds, junk bonds issued by SMBs accounted for less than 10 percent, according to the recent data published by the Korea Investors Service.

Woongjin’s recent bankruptcy and prolonged recession among SMBs caused transactions of sub-investment grade bonds to freeze and the share of junk bonds has been subsequently shrinking. As of early-2010, the case of high-yield bond issuance (12.4 percent) was numbered at 42 (12.4 percent) but dropped to 30 (8.1 percent) to date.

[Written by Hye-soon Kim - Jieun Lee / edited by Soyoung Chung]

[ⓒ Maeil Business Newspaper &, All rights reserved]

Korean View
中企전용 채권시장 만든다
하이일드債 거래 활성화

중소기업 자금난 해소를 위해 금융당국이 하이일드채권 시장을 획기적으로 활성화하는 방안을 검토하고 있다. 6일 금융투자업계에 따르면 금융감독원과 신용평가사, 증권사 등 시장 관계자들이 중소기업 대출 채권을 기초로 하이일드채권 발행안을 논의 중이다.

그간 중소기업 자금 지원은 정부 주도로 이루어져 왔다. 그러다 보니 재정지출 부담이 너무 큰 데다 지원을 받는 중소기업에 대한 관리ㆍ감독도 제대로 이루어지지 않아 도덕적 해이가 심각한 것으로 지적됐다. 하이일드채권이 활성화되면 이 두 가지 문제가 동시에 해결된다.


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