Citation

Batten JA, Szilagyi PG. World Bank Res. Obs. 2007; 22(2): 165-195.

Copyright

(Copyright © 2007, International Bank for Reconstruction and Development/The World Bank, Publisher Oxford University Press)

DOI

10.1093/wbro/lkm007

PMID

unavailable

Abstract

This study contrasts the development of the Republic of Korea's market for won-denominated foreign bonds (Arirang) with similar markets in the Asia-Pacific region. It discusses the problems, concerns, and key issues related to the development of this market within the broader context of domestic, regional, and global bond market development. Korea's experience provides valuable lessons for other emerging market economies also seeking to build bond markets for local and foreign issuers. The sophistication of the local bond market is not enough to make it appealing to foreign borrowers. Market development demands ensuring an enabling infrastructure and a background of macroeconomic stability, nurturing local and international demand, deregulating capital flows, and minimizing exchange restrictions.