Nov. 24 (Bloomberg) -- The cost of insuring South Korean government debt from default increased after North Korea attacked an island on the two nations’ border yesterday.
Credit-default swaps on South Korea rose 3 basis points to 107.5 basis points as of 9:10 a.m. in Seoul, according to Royal Bank of Scotland Group Plc.
North Korea fired artillery shells into South Korea yesterday, killing two soldiers and setting houses ablaze in the worst attack on its neighbor in at least eight months.
Credit-default swaps pay the buyer face value if a borrower fails to meet its obligations.
To contact the reporter on this story: Yusuke Miyazawa in Tokyo at firstname.lastname@example.org
To contact the editor responsible for this story: Will McSheehy at email@example.com