May 30, 1997
TO: INTERNATIONAL COMMITTEE No. 18-97
RE: KOREA TO BEGIN TO ALLOW FOREIGNERS TO BUY KOREAN BONDS
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The Korean government has announced that it will begin to open the Korean bond market to
foreign investors. Effective June 2, 1997 foreigners will be permitted to purchase Korean Stock
Exchange listed, non-guaranteed convertible bonds issued by large Korean listed enterprises. Total
foreign purchases of these convertible bonds cannot exceed 30% of each issue, and an individual foreign
investor can hold no more than 6%. Foreigners also will be permitted to purchase non-guaranteed listed
bonds, with maturities of three years or more, issued by small and medium-sized Korean companies.
The total foreign ownership limit for each issue of these bonds will be 50%; there will be no individual
limit.
Attached are a memorandum and news article describing these steps.
We will keep you informed of further developments.
Mary S. Podesta
Associate Counsel-International
Attachment