South Korea Mulls Measures to Back Corporate Bonds, Yonhap Says

South Korea’s government is considering measures to support demand for corporate bonds rated A or lower, Yonhap News reported on Sunday, citing unidentified financial industry officials.

The measures are intended to facilitate companies’ funding through issuing debt and will be released in the first half of this year, according to Yonhap.

Among the measures to be considered are allowing state-run Korea Development Bank to purchase more A-rated bonds and making it compulsory for so-called high-yield funds to invest in A-rated notes, Yonhap said.

Korea’s regulator, the Financial Services Commission, said in statement on Sunday that while it is reviewing various ways to improve regulations on corporate debt and aimed to announce developments in the first half of the year, details have not been decided. FSC said the options regarding KDB have not been discussed.

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