Kimchi bond

A Kimchi bond is a non-won-denominated bond issued in the South Korean market. The name refers to kimchi, a Korean side dish. [cite news|url=http://www.hani.co.kr/arti/economy/stock/126171.html|publisher=The Hankyoreh|title=‘김치본드’ 내달 처음으로 선보인다 (Announcement: first 'Kimchi Bonds' next month)|date=2006-05-24|last=Gwon|first=Yeong-seok|accessdate=2007-07-06] Woori Bank, who are credited with coining the term, define it as solely referring to bonds from foreign issuers, a definition echoed by the Ministry of Finance and Economy.cite news|publisher=The Standard|url=http://www.thestandard.hk/news_detail.asp?we_cat=10&art_id=19404&sid=8121218&con_type=1&d_str=20060525|date=2006-05-25|accessdate=2007-07-06|title='Kimchi' bonds for Koreans] cite news|url=http://english.mofe.go.kr/news/view.html?sn=4421&sub=01&page=&q=&
|publisher=Ministry of Finance and Economy|title=Supplement to MOFE Press Release: 2nd Meeting of the Financial Hub Initiative Committee|date-2006-06-19|accessdate=2007-07-06|] However, in practise, the term is also used to refer to non-won-denominated bond issuance by domestic entities as well.cite paper|url=http://www.db.com/korea/download/Korea.pdf|format=PDF|title=Deutsche Bank Group Profile: Korea|publisher=Deutsche Bank|accessdate=2007-07-06|date=October 2006] [cite news|url=http://www4.janes.com/subscribe/jtf/doc_view.jsp?K2DocKey=/content1/janesdata/mags/jtf/history/jtf2007/jtf31270.htm@current&Prod_Name=JTF&QueryText=|date=2007-06-21|accessdate=2007-07-06|publisher=Jane's Transport Finance|title=SK Shipping prepares kimchi] Deutsche Bank credit themselves as having executed the first kimchi bond transaction, a US$100 million two-year floating rate note sold by South Korean company SK Global; however, the first foreign company to sell non-won-denominated bonds in the South Korean market was Bear Stearns. Though foreign firms had long been permitted to issue won-denominated bonds, typically referred to as Arirang bonds, permission for them to issue foreign currency-denominated bonds had been slower in coming. Permission was finally granted due to the strength of the won in 2005. [cite news|url=http://news.nate.com/Service/natenews/ShellView.asp?LinkID=4&ArticleID=2005042403305325118|title=Woori considers issuing dollar-denominated 'kimchi bond'|date=2005-04-24|accessdate=2007-07-06|publisher=Herald Media|last=Kim|first=Jung-min]

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